Eurozone confidence data will play a key role today and the Euro is expected to react with an increase in volume following the release. CPI and PPI data are likely to show the absence of inflation and pose a continued challenge for the ECB. The EURJPY has pushed into its horizontal resistance zone, but how will price action react following the release of economic data across the Eurozone? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
Japanese retail sales came in weaker than expected for October and the contraction wiped out the previous month’s gains. The Japanese Yen remained stable despite the economic disappointment as a contraction was expected. Forex traders will now focus on Eurozone confidence data and inflation data. What impact will it have on the EURJPY? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Here are the key factors to keep in mind today for Euro trades:
- Preliminary Spanish CPI: The Preliminary Spanish CPI for November is predicted to increase by 0.1% monthly and by 0.1% annualized. Forex traders can compare this to the Spanish CPI for October which increased by 1.0% monthly and by 0.1% annualized. Spanish Harmonized CPI for November is predicted to increase by 0.6% monthly and by 0.5% annualized. Forex traders can compare this to the Spanish Harmonized CPI for October which increased by 0.7% monthly and by 0.2% annualized.
- Spanish Retail Sales: Spanish Retail Sales for October are predicted to increase by 3.3% annualized. Forex traders can compare this to Spanish Retail Sales for September which increased by 3.4% annualized.
- Eurozone Money Supply M3 and Private Sector Loans: Eurozone Money Supply M3 for October is predicted to increase by 5.5% annualized and Private Sector Loans are predicted to increase by 3.5% annualized. Forex traders can compare this to Eurozone Money Supply M3 for September which increased by 5.5% annualized and to Private Sector Loans which increased by 3.4% annualized.
- Italian PPI: The Italian PPI for October is predicted to decrease by 0.2% monthly and by 2.7% annualized. Forex traders can compare this to the Italian PPI for September which increased by 0.1% monthly and which decreased by 1.7% annualized.
- Eurozone Confidence Data: Eurozone Economic Confidence for November is predicted at 101.0. Forex traders can compare this to Eurozone Economic Confidence for October which was reported at 100.8. Eurozone Industrial Confidence for November is predicted at -9.1. Forex traders can compare this to Eurozone Industrial Confidence for October which was reported at -9.5. Eurozone Services Confidence for November is predicted at 8.8. Forex traders can compare this to Eurozone Services Confidence for October which was reported at 9.0. Final Eurozone Consumer Confidence for November is predicted at -7.2. Forex traders can compare this to the previous Eurozone Consumer Confidence for November which was reported at -7.2. The Eurozone Business Climate Indicator for November is predicted at -0.14. Forex traders can compare this to Eurozone Business Climate Indicator for October which was reported at -0.19.
- Preliminary German CPI: The Preliminary German CPI for November is predicted to decrease by 0.6% monthly and to increase by 1.3% annualized. Forex traders can compare this to the German CPI for October which increased by 0.1% monthly and by 1.1% annualized. The EU Harmonized German CPI for November is predicted to decrease by 0.7% monthly and to increase by 1.2% annualized. Forex traders can compare this to the EU Harmonized German CPI for October which increased by 0.1% monthly and by 0.9% annualized.
Here are the key factors to keep in mind today for Japanese Yen trades:
- Japanese Retail Trade Data: Japanese Retail Trade for October decreased by 14.4% monthly and by 7.1% annualized. Economists predicted a decrease of 10.4% monthly and 3.8% annualized. Forex traders can compare this to Japanese Retail Trade for September which increased by 7.2% monthly and by 9.2% annualized. Large Retailer’s Sales for October decreased by 8.2% monthly. Economists predicted a decrease of 7.1% monthly. Forex traders can compare this to Large Retailer’s Sales for September which increased by 10.0% monthly.
- Japanese Buying Foreign Bonds and Japanese Buying Foreign Stocks/Foreign Buying Japanese Bonds and Foreigners Buying Japanese Stocks: Japanese Buying Foreign Bonds for the period ending November 22nd was reported at -¥155.2B and Japanese Buying Foreign Stocks was reported at -¥63.5B. Forex traders can compare this to Japanese Buying Foreign Bonds for the period ending November 15th which was reported at ¥123.4B and to Japanese Buying Foreign Stocks which was reported at -¥64.7B. Foreign Buying Japanese Bonds for the period ending November 22nd was reported at ¥458.9B and Foreigners Buying Japanese Stocks was reported at ¥131.7B. Forex traders can compare this to Foreign Buying Japanese Bonds for the period ending November 15th which was reported at -¥432.4B and to Foreigners Buying Japanese Stocks which was reported at ¥111.0B.
Should price action for the EURJPY remain inside the or breakdown below the 120.000 to 120.650 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 120.500
- Take Profit Zone: 117.000 – 117.550
- Stop Loss Level: 120.850
Should price action for the EURJPY breakout above 120.650 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 120.850
- Take Profit Zone: 122.300 – 122.000
- Stop Loss Level: 120.350
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Did you know that you can earn more pips per trade at PaxForex? Switch now and see for yourself why more forex traders prefer PaxForex every day.
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
