Final Italian and Eurozone CPI data will be released, but economists expected the previous October data to be confirmed which will show the absence of inflationary pressures. The ECB has failed on its mandate of price stability under President Draghi and new President Lagarde is expected to follow his approach. The Eurozone trade balance will also be released, will the EURJPY extend its sell-off or can it recover to the upside? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
The final reading on Japanese industrial production showed an upward revision. The Japanese Yen has attracted safe-haven demand as global economic concerns are once again on the rise. The Bank of Japan is closely monitoring the strength of its currency and has vowed not to let it rally to levels that will hurt its exporters. How will the EURJPY react after the release of Eurozone economic data? Today’s fundamental analysis will take a look at the upside potential as well as downside risk in this currency pair.
Here are the key factors to keep in mind today for Euro trades:
- Final Italian CPI: The Final Italian CPI for October is predicted to decrease by 0.5% monthly and to increase 0.3% annualized. Forex traders can compare this to the previous Italian CPI for October which decreased by 0.6% monthly and which increased by 0.3% annualized. The Final Italian Harmonized CPI for October is predicted to increase by 0.2% monthly and by 0.2% annualized. Forex traders can compare this to the previous Italian Harmonized CPI for October which increased by 0.2% monthly and by 0.2% annualized.
- Eurozone Final CPI: The Eurozone CPI for October is predicted to increase by 0.2% monthly and by 0.7% annualized. Forex traders can compare this to the previous Eurozone CPI for October which increased by 0.2% monthly and by 0.7% annualized. The Final Eurozone Core CPI for October is predicted to increase by 0.1% monthly and by 1.1% annualized. Forex traders can compare this to the previous Eurozone Core CPI for October which increased by 0.1% monthly and by 1.1% annualized. The Final Eurozone Harmonized Core CPI for October is predicted to increase by 0.2% monthly and by 1.2% annualized. Forex traders can compare this to the previous Eurozone Harmonized Core CPI for October which increased by 0.2% monthly and by 1.2% annualized.
- Eurozone Trade Balance: The Eurozone Trade Balance for September is predicted at €17.5B. Forex traders can compare this to the Eurozone Trade Balance for August which was reported at €14.7B.
Here is the key factor to keep in mind today for Japanese Yen trades:
- Japanese Industrial Production and Capacity Utilization: Final Japanese Industrial Production for September increased by 1.7% monthly and by 1.3% annualized. Forex traders can compare this to previous Japanese Industrial Production for September which increased by 1.4% monthly and by 1.1% annualized. Capacity Utilization for September increased by 1.0% monthly. Forex traders can compare this to Capacity Utilization for August which decreased by 2.9% monthly.
Should price action for the EURJPY remain inside the or breakdown below the 119.450 to 120.200 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 119.700
- Take Profit Zone: 117.100 – 117.550
- Stop Loss Level: 120.600
Should price action for the EURJPY breakout above 120.200 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 120.600
- Take Profit Zone: 121.100 – 121.450
- Stop Loss Level: 120.200
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Online forex trading remains the most popular segment of the global financial market, sign-up now with PaxForex and earn more pips per trade!
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