Source: PaxForex Premium Analytics Portal, Fundamental Insight
Final Japanese Industrial Production for July increased by 8.7% monthly and decreased by 15.5% annualized. Forex traders can compare this to Japanese Industrial Production for June, which increased by 1.9% monthly, and which decreased by 18.2% annualized. Capacity Utilization for July increased by 9.6% monthly. Forex traders can compare this to Capacity Utilization for June, which increased by 6.2% monthly. The Japanese Tertiary Industry Index for July decreased by 0.5% monthly. Economists predicted an increase of 0.6% monthly. Forex traders can compare this to the Japanese Tertiary Industry Index for June, which increased by 7.9% monthly.
Eurozone Industrial Production for July is predicted to increase by 4.0% monthly and to decrease by 8.2% annualized. Forex traders can compare this to Eurozone Industrial Production for June, which increased by 9.1% monthly, and which decreased by 12.3% annualized.
The forecast for the EUR/JPY turned bearish after the Tenkan-sen crossed below the Kijun-sen. Japan is set to welcome a new prime minister as the economic toll from Covid-19 represents a challenge for the next leader. The Eurozone printed mixed data over the past few weeks, and rising Covid-19 cases pose a threat moving forward. Safe-haven demand for the Japanese Yen could once again accelerate, allowing this currency pair to correct into its next horizontal support area just below its Ichimoku Kinko Hyo Cloud. Can bears force a correction? 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 125.500 to 126.000 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 125.700
- Take Profit Zone: 121.950 – 122.850
- Stop Loss Level: 126.500
Should price action for the EURJPY breakout above 126.000 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 126.500
- Take Profit Zone: 127.100 – 127.500
- Stop Loss Level: 126.000
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