Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Household Spending for July dropped by 2.7% monthly by 5.0% annualized. Economists predicted a rise of 0.7% and a contraction of 2.5%. Forex traders can compare this to Japanese Household Spending for June, which rose by 0.9% monthly and decreased by 4.2% annualized.
The Final Japanese Jibun Bank Services PMI for August was reported at 54.3, and the Final Japanese Jibun Bank Composite PMI at 52.6. Forex traders can compare this to the Japanese Jibun Bank Services PMI for July, reported at 53.8, and the Japanese Jibun Bank Composite PMI at 52.2.
The Spanish HCOB Services PMI for August is predicted at 51.5. Forex traders can compare this to the Spanish HCOB Services PMI for July, reported at 52.8.
The Italian HCOB Services PMI for August is predicted at 50.2. Forex traders can compare this to the Italian HCOB Services PMI for July, reported at 51.5.
The Final French HCOB Services PMI for August is predicted at 46.7, and the Final French HCOB Composite PMI at 46.6. Forex traders can compare this to the French HCOB Services PMI for July, reported at 47.1, and the French HCOB Composite PMI at 46.6.
The Final German HCOB Services PMI for August is predicted at 47.3, and the Final German HCOB/BME Composite PMI at 44.7. Forex traders can compare this to the German HCOB Services PMI for July, reported at 52.3, and the German HCOB/BME Composite PMI at 48.5.
The Final Eurozone HCOB Services PMI for August is predicted at 48.3, and the Final Eurozone HCOB Composite PMI at 47.0. Forex traders can compare this to the Eurozone HCOB Services PMI for July, reported at 50.9, and the Eurozone HCOB Composite PMI at 48.6.
The Eurozone PPI for July is predicted to decrease by 0.6% monthly and 7.6% annualized. Forex traders can compare this to the Eurozone PPI for June, which contracted by 0.4% monthly and 3.4% annualized.
The forecast for the EUR/JPY remains bearish after this currency pair failed to push through its horizontal resistance area. Price action trades between its ascending Kijun-sen and Tenkan-sen, suggesting bulls will attempt to extend their rally, but traders must consider a potential intervention by the Bank of Japan. The Ichimoku Kinko Hyo Cloud shows signs of exhaustion, giving bears a base of operations. Traders should also monitor the CCI after dipping into extreme oversold territory. This technical indicator bounced higher but remains below zero, and a reversal could spark a sell-off. Can bears regain control over the EUR/JPY and pressure price action 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 157.500 to 158.500 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 158.200
- Take Profit Zone: 153.300 – 154.500
- Stop Loss Level: 159.000
Should price action for the EURJPY breakout above 158.500, PaxForex recommends the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 159.000
- Take Profit Zone: 159.750 – 160.00
- Stop Loss Level: 158.500
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