Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Household Spending for December decreased by 2.1% monthly and 1.3% annualized. Economists predicted an increase of 0.3% and a contraction of 0.2%. Forex traders can compare this to Japanese Household Spending for November, which dropped by 0.9% monthly and 2.1% annualized.
Japanese Average Cash Earnings for December surged by 4.8% annualized and Japanese Overtime Pay by 3.0% annualized. Forex traders can compare this to Japanese Average Cash Earnings for November, which increased by 1.9% annualized, and to Japanese Overtime Pay, which surged by 5.2% annualized. The Overall Wage Income for Employees for December expanded by 4.8% annualized. Forex traders can compare this to the Overall Wage Income for Employees for November, which rose by 1.9% annualized.
Japanese Foreign Reserves for January came in at $1,250.2B. Forex traders can compare this to Japanese Foreign Reserves for December, reported at $1,227.6B.
The Preliminary Japanese Leading Index for December came in at 97.2, and the Preliminary Japanese Coincident Index at 98.9. Forex traders can compare this to the Japanese Leading Index for November, reported at 97.7, and to the Japanese Coincident Index at 99.3.
UK BRC Retail Sales for January increased by 3.9% annualized. Economists predicted a rise of 3.9% annualized. Forex traders can compare this to UK BRC Retail Sales for December, which surged by 6.5% annualized.
The UK Halifax House Price Index for January is predicted to decrease by 0.8% monthly and 0.3% annualized. Forex traders can compare this to the UK Halifax House Price Index for December, which dropped by 1.5% monthly and increased by 2.0% annualized.
The forecast for the GBP/JPY turned cautiously bullish after this currency pair recorded a third higher low and moved above its horizontal support area. Short-term volatility may rise as bulls and bears wrestle for control over the next directional move, with the Kijun-sen and the Tenkan-sen flat. The Ichimoku Kinko Hyo Cloud shows signs of a bottom as the Senkou Span A began a minor upward drift with the Senkou Span B flat. Traders should also monitor the CCI, which recorded three higher lows and bounced higher after a minor dip into extreme oversold territory. This technical indicator has plenty of upside potential, and a move above zero could trigger the next leg higher. Can bulls maintain upside pressure on the GBP/JPY and push price action into its horizontal resistance 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 breakout above the 158.600 to 159.550 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Short Position @ 159.250
- Take Profit Zone: 162.300 – 163.750
- Stop Loss Level: 157.550
Should price action for the GBP/JPY breakdown below 158.600, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Long Position @ 157.550
- Take Profit Zone: 155.350 – 156.350
- Stop Loss Level: 158.600
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