Japanese data released during the Asian morning trading session showed an increase in household spending for July, but at a sharply reduced rate as compared to June. This may be partially attributed to the unexpected contraction in labor cash earnings. The Japanese Yen extended its weakness which pushed the EURJPY further to the upside following its most recent breakout. Positive sentiment in regards to US-China trade talks have also caused risk-on traders to rotate out of safe-haven assets such as the Japanese Yen. How much longer can this uptrend last? Today’s fundamental analysis will explore the upside potential as well as the downside risk in this currency pair.

Forex traders will get German industrial production data this morning as economists expect a small monthly increase following the previous month’s contraction. Later during the European trading session, final second-quarter GDP data out of the Eurozone is anticipated to have an impact on the Euro if revisions will be announced. Will the data suffice to keep the bulls in charge of the EURJPY and extend the gains or will the bears get encouraged to force a price action reversal? Subscribe to the PaxForex Daily Fundamental Analysis and join our fast growing community of profitable forex traders.