Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Japan Reuters Tankan Index for October was reported at 16. Forex traders can compare this to the Japan Reuters Tankan Index for September, reported at 18. Japanese Machine Orders for August decreased 2.4% monthly and increased 17.0% annualized. Economists predicted an increase of 1.7% and 14.7%. Forex traders can compare this to Japanese Machine Orders for July, which increased 0.9% monthly and 11.1% annualized. Japanese M3 Money Supply for September was reported at ¥1,999.8T. Forex traders can compare this to Japanese M3 Money Supply for August, reported at ¥1,995.4T.

The Final German CPI for September is predicted flat at 0.0% monthly and an increase of 4.1% annualized. Forex traders can compare this to the previous German CPI for September, which was reported flat at 0.0% monthly and increased 4.1% annualized. The Final EU Harmonized German CPI for September is predicted to increase 0.3% monthly and 4.1% annualized. Forex traders can compare this to the previous EU Harmonized German CPI for September, which increased 0.3% monthly and 4.1% annualized.

Eurozone Industrial Production for August is predicted to decrease 1.6% monthly and increase 4.7% annualized. Forex traders can compare this to Eurozone Industrial Production for July, which increased 1.5% monthly and 7.7% annualized.

The forecast for the EUR/JPY tuned cautiously bearish after price action surged into resistance. Adding to bearish sentiment are the flat Kijun-sen and Tenkan-sen. The Ichimoku Kinko Hyo Cloud also remains in a downtrend, but the degree of bearishness eased. After the CCI moved into extreme overbought territory, it started to descend. Traders should wait for a breakdown below 100 before placing their sell orders. Can bears regain control over the EUR/JPY and force a correction into its 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 130.750 to 131.250 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 131.050
• Take Profit Zone: 129.100 – 129.350
• Stop Loss Level: 131.750

Should price action for the EURJPY breakout above 131.250, PaxForex recommends the following trade set-up is recommended:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 131.750
• Take Profit Zone: 132.700 – 133.100
• Stop Loss Level: 131.250

Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.