Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK RICS House Price Balance for November plunged 25.0% monthly. Economists predicted a drop of 10.0% monthly. Forex traders can compare this to the UK RICS House Price Balance for October, which decreased by 2.0%.
The Preliminary Japanese Current Account Balance for October came in at -¥64.1B. Economists predicted a figure of ¥623.4B. Forex traders can compare this to the Japanese Current Account Balance for September, reported at ¥909.3B. The Preliminary Japanese Adjusted Current Account Balance for October came in at -¥610.0B. Economists predicted a figure of ¥350.0B. Forex traders can compare this to the Japanese Adjusted Current Account Balance for September, reported at ¥670.0B.
Japanese Bank Lending for November increased by 2.7% annualized. Forex traders can compare this to Japanese Bank Lending for October, which rose 2.6% annualized.
Foreign Buying of Japanese Bonds for the period ending December 3rd came in at ¥522.2B, and Foreigners Buying of Japanese Stocks at -¥349.3B. Forex traders can compare this to the Foreign Buying of Japanese Bonds for the period ending November 26th, reported at -¥46.7B, and to Foreigners Buying of Japanese Stocks at ¥443.2B.
The Final Japanese GDP for the third quarter decreased by 0.2% quarterly and 0.8% annualized. Economists predicted a drop of 0.3% and 1.1%. Forex traders can compare this to the Japanese GDP for the second quarter, which rose 1.1% quarterly and 4.5% annualized. Final Private Consumption for the third quarter rose 0.1% quarterly, and Final Capital Expenditure increased by 1.5% quarterly. Economists predicted a rise of 0.3% and 1.5%. Forex traders can compare this to Private Consumption for the second quarter, which surged by 1.7% quarterly, and Capital Expenditure, which increased by 2.4% quarterly. Final External Demand for the third quarter decreased by 0.6% quarterly. Economists predicted a drop of 0.7%. Forex traders can compare this to External Demand for the second quarter, which rose 0.1% quarterly. The final GDP Price Index for the third quarter decreased by 0.3% quarterly. Forex traders can compare it to the GDP Price Index for the second quarter, which contracted 0.2% quarterly.
The Japanese Eco Watchers Survey Current Index for November came in at 48.1, and the Japanese Eco Watchers Survey Outlook Index at 45.1. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for October, reported at 49.9, and the Japanese Eco Watchers Survey Outlook Index at 46.4.
The forecast for the GBP/JPY remains bearish after the horizontal resistance area rejected this currency pair and price action recorded three lower highs. Adding to the bearish sentiment are the descending Kijun-sen and Tenkan-sen, which are on the verge of a bearish crossover. The Ichimoku Kinko Hyo Cloud flattened and is expected to start narrowing, further depleting upside potential. Traders should also monitor the CCI after bouncing off extreme oversold conditions. This technical indicator may briefly eclipse the zero barrier before resuming its downtrend with plenty of downside potential, offering traders a final sell signal. Can bears strengthen their grip on the GBP/JPY and force price action into its 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 165.950 to 167.600 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 166.850
- Take Profit Zone: 160.400 – 162.300
- Stop Loss Level: 168.200
Should price action for the GBP/JPY breakout above 167.600, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 168.200
- Take Profit Zone: 169.450 – 170.250
- Stop Loss Level: 167.600
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