Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japan Reuters Tankan Index for February came in at 6. Forex traders can compare this to the Japan Reuters Tankan Index for January, reported at 17. The Japanese Tertiary Industry Index for December increased 0.4% monthly. Forex traders can compare this to the Japanese Tertiary Industry Index for November, which rose 0.7% monthly.
The UK CPI for January decreased 0.1% monthly and increased 5.5% annualized. Economists predicted a decline of 0.2% and a rise of 5.4%. Forex traders can compare this to the UK CPI for December, which expanded 0.5% monthly and 5.4% annualized. The Core CPI for January decreased 0.4% monthly and increased 4.4% annualized. Economists predicted a drop of 0.4% and a rise of 4.3%. Forex traders can compare this to Core CPI for December, which expanded 0.5% monthly and 4.2% annualized.
The UK PPI Input for January rose 0.9% monthly and 13.6% annualized. Economists predicted an increase of 0.9% and 13.1%. Forex traders can compare this to the UK PPI Input for December, which expanded 0.1% monthly and 13.8% annualized. The UK PPI Output for January rose 1.2% monthly and 9.8% annualized. Economists predicted a rise of 0.6% and 9.1%. Forex traders can compare this to the UK PPI Output for December, which increased 0.3% monthly and 9.3% annualized. The UK PPI Core Output for January rose 1.1% monthly and 9.3% annualized. Forex traders can compare this to the UK PPI Core Output for December, which rose 0.6% monthly and 8.6% annualized.
The UK RPI for January came in flat at 0.0% monthly and expanded 7.8% annualized. Economists predicted a decrease of 0.4% and an increase of 7.5%. Forex traders can compare this to the UK RPI for December, which rose 1.1% monthly and 7.5% annualized. The UK Core RPI for January came in flat at 0.0% monthly and increased by 8.0% annualized. Forex traders can compare this to the UK Core RPI for December, which rose 1.1% monthly and 7.7% annualized.
The forecast for the GBP/JPY turned bearish for the medium-term after this currency pair corrected from a higher high. A correction into its sideways trending Ichimoku Kinko Hyo Cloud may follow, as global inflationary pressures continue expanding After the ascending Tenkan-sen crossed above the flat Kijun-sen, a rise in volatility could result in a temporary downside. Traders should monitor the CCI after it retreated from extreme overbought conditions. A retest of the 100 level with a lower high followed by rejection can lead to renewed selling. Can bears pressure the GBP/JPY 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 156.250 to 157.250 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 156.750
- Take Profit Zone: 152.600 – 153.350
- Stop Loss Level: 158.100
Should price action for the GBP/JPY breakout above 157.250, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 158.100
- Take Profit Zone: 159.850 – 160.650
- Stop Loss Level: 157.250
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
