Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary Japanese Leading Index for September was reported at 92.9, and the Preliminary Japanese Coincident Index was reported at 80.8. Economists predicted a figure of 88.6 and 79.0. Forex traders can compare this to the Japanese Leading Index for August, reported at 88.5, and to the Japanese Coincident Index, reported at 79.4.
The German Trade Balance for September was reported at a €17.8B. Economists predicted a figure of €15.8B. Forex traders can compare this to German Trade Balance for August, reported at €15.4B. Exports for September increased by 2.3% monthly, and Imports decreased by 0.1% monthly. Economists predicted an increase of 2.0% and 2.1%. Forex traders can compare this to Exports for August, which increased by 2.4% monthly, and to Imports, which increased by 5.8% monthly. The German Current Account Balance for September was reported at a €26.3B. Forex traders can compare this to the German Current Account Balance for August, reported at €16.5B.
The forecast for the EUR/JPY turned bearish after price action reached its sideways trending Kijun-sen, located below its narrow Ichimoku Kinko Hyo Cloud. Short-term optimism over clarity about the US presidential election is expected to fade, with traders focusing on the economy, where the outlook remains impacted by the second wave of Covid-19 infections. The Japanese Yen could attract more safe-haven bids, pushing the CCI into negative territory. Will bears mount a comeback and force the EUR/JPY into its next horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EURJPY remain inside the or breakdown below the 122.650 to 123.350 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 123.000
- Take Profit Zone: 119.150 – 120.250
- Stop Loss Level: 124.000
Should price action for the EURJPY breakout above 123.350 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 124.000
- Take Profit Zone: 125.350 – 125.800
- Stop Loss Level: 123.350
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