All eyes will be on Eurozone confidence data which will be released during the morning trading session. French second-quarter GDP clocked in weaker than expected and German GfK Consumer Confidence slid further. Economists anticipate that confidence data out o the Eurozone will decrease and forex traders will look out for the Eurozone Business Climate Indicator which is approaching 0. How will this impact the EURJPY? Today’s fundamental analysis will take a look if the most recent up-tick can extend to the upside or if a renewed push to the downside is on the horizon.
Here are the key factors to keep in mind today for Euro trades:
- French GDP: The Preliminary French GDP for the second-quarter increased by 0.2% quarterly and by 1.2% annualized. Economists predicted an increase of 0.3% quarterly and of 1.3% annualized. Forex traders can compare this to the first-quarter GDP which increased by 0.3% quarterly and by 1.2% annualized.
- German GfK Consumer Confidence Survey: The German GfK Consumer Confidence Survey for August was reported at 9.7. Economists predicted a figure of 9.7. Forex traders can compare this to the German GfK Consumer Confidence Survey for July which was reported at 9.8.
- French Consumer Spending: French Consumer Spending for June is predicted to increase by 0.2% monthly. Forex traders can compare this to French Consumer Spending for May which increased by 0.4% monthly.
- Eurozone Confidence Data: Eurozone Economic Confidence for July is predicted at 102.7. Forex traders can compare this to Eurozone Economic Confidence for May which was reported at 103.3. Eurozone Industrial Confidence for July is predicted at -6.7. Forex traders can compare this to Eurozone Industrial Confidence for May which was reported at -5.6. Eurozone Services Confidence for July is predicted at 10.7. Forex traders can compare this to Eurozone Services Confidence for May which was reported at 11.0. Final Eurozone Consumer Confidence for July is predicted at -6.6. Forex traders can compare this to the previous Eurozone Consumer Confidence for July which was reported at -6.6. The Eurozone Business Climate Indicator for July is predicted at 0.10. Forex traders can compare this to Eurozone Business Climate Indicator for May which was reported at 0.17.
- Preliminary German CPI: The Preliminary German CPI for July is predicted to increase by 0.3% monthly and by 1.5% annualized. Forex traders can compare this to the German CPI for June which increased by 0.3% monthly and by 1.6% annualized. The EU Harmonized German CPI for July is predicted to increase by 0.5% monthly and by 1.3% annualized. Forex traders can compare this to the EU Harmonized German CPI for June which increased by 0.3% monthly and by 1.5% annualized.
The Bank of Japan decided to keep interest rates unchanged, but did not rule out future easing. This was the second major central bank, after the ECB, which decided to await more economic data before adding more economic stimulus. The Japanese Yen weakened during the Asian trading session, and adding to downside pressures was a larger than expected drop in industrial production. The EURJPY advanced off of strong support levels, can this trend extend to the upside? Follow the PaxForex Daily Fundamental Analysis today and take the profitable side of this currency pair!
Here are the key factors to keep in mind today for Japanese Yen trades:
- Japanese Jobless Rate and Job-to-Applicant Ratio: The Japanese Jobless Rate for June was reported at 2.3% and the Job-to-Applicant Ratio at 1.61. Economists predicted a figure of 2.4% and of 1.62. Forex traders can compare this to the Japanese Jobless Rate for May which was reported at 2.4% and to the Job-to-Applicant Ratio which was reported at 1.62.
- Japanese Industrial Production: Preliminary Japanese Industrial Production for June decreased by 3.6% monthly and by 4.1% annualized. Economists predicted an decrease of 1.7% monthly and of 2.0% annualized. Forex traders can compare this to Japanese Industrial Production for May which increased by 2.0% monthly and which decreased by 2.1% annualized.
- Bank of Japan Policy Rate and 10-Year Yield Target: The Bank of Japan Policy Rate was reported at -0.10% and the 10-Year Yield Target at 0.00%.Economists predicted a level of -0.10% and of 0.00%. Forex traders can compare this to the previously announced Bank of Japan Policy Rate which was reported at -0.10% and to the 10-Year Yield Target which was reported at 0.00%.
Should price action for the EURJPY remain inside the or breakout above the 120.700 to 121.350 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 121.000
- Take Profit Zone: 122.850 – 123.300
- Stop Loss Level: 120.200
Should price action for the EURJPY breakdown below 120.700 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 120.500
- Take Profit Zone: 118.350 – 119.300
- Stop Loss Level: 121.000
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