Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Japanese National CPI for March increased by 0.2% monthly and decreased by 0.2% annualized. Forex traders can compare this to the Japanese National CPI for February, which increased by 0.1% monthly and decreased by 0.4% annualized. The Japanese National Core CPI for March decreased by 0.1% annualized. Economists predicted a decrease of 0.1%. Forex traders can compare this to the Japanese National Core CPI for February, which decreased by 0.4% annualized.

The Preliminary Japanese Jibun Bank Manufacturing PMI for April was reported at 53.3. Forex traders can compare this to the Japanese Jibun Bank Manufacturing PMI for March, reported at 52.7. The Preliminary Japanese Jibun Bank Services PMI for April was reported at 48.3. Forex traders can compare this to the Japanese Jibun Bank Services PMI for March, reported at 48.3. The Preliminary Japanese Jibun Bank Composite PMI for April was reported at 50.2. Forex traders can compare this to the Japanese Jibun Bank Composite PMI for March, reported at 49.9.

UK Retail Sales for March increased by 5.4% monthly and 7.2% annualized. Economists predicted an increase of 1.5% and 3.5%. Forex traders can compare this to UK Retail Sales for February, which increased by 2.2% monthly and decreased by 3.6% annualized. UK Core Retail Sales for March increased by 4.9% monthly and 7.9% annualized. Economists predicted an increase of 1.9% and 4.5%. Forex traders can compare this to UK Core Retail Sales for February, which increased by 2.5% monthly and decreased by 1.0% annualized. UK Public Sector Net Borrowing for March was reported at £27.27B. Forex traders can compare this to UK Public Sector Net Borrowing for February, reported at £15.31B.

The Preliminary UK Markit Manufacturing PMI for April is predicted at 59.0. Forex traders can compare this to the UK Markit Manufacturing PMI for March, reported at 58.9. The Preliminary UK Markit Services PMI for April is predicted at 59.0. Forex traders can compare this to the UK Markit Services PMI for March, reported at 56.3. The Preliminary UK Markit Composite PMI for April is predicted at 58.2. Forex traders can compare this to the UK Markit Composite PMI for March, reported at 56.4.

The forecast for the GBP/JPY remains bearish as financial markets enter a likely risk-off period amid a surging Covid-19 pandemic, economic uncertainty, and policy mistakes. After price action moved into its ascending Ichimoku Kinko Hyo Cloud, more downside is possible until it reaches the lower band. The Tenkan-sen started to trend lower after crossing below its flat Kijun-sen, suggesting more weakness ahead. The CCI moved into extreme oversold territory but has more room to the downside. Can bears extend the sell-off in the GBP/JPY and guide it into its next horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.

Should price action for the GBP/JPY remain inside the or breakdown below the 149.000 to 150.000 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 149.600
• Take Profit Zone: 145.450 – 146.350
• Stop Loss Level: 150.600

Should price action for the GBP/JPY breakout above 150.000, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 150.600
• Take Profit Zone: 151.300 – 152.000
• Stop Loss Level: 150.000

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