Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final Japanese Manufacturing PMI for December came in at 54.3. Economists predicted a figure of 54.2. Forex traders can compare this to the Japanese Manufacturing PMI for November, reported at 54.5.
UK Net Consumer Credit for November is predicted at £0.800B, and Net Mortgage Lending is predicted at £3.550B. Forex traders can compare this to UK Net Consumer Credit for October, reported at £0.706B, and Net Mortgage Lending reported at £1.607B.UK Mortgage Approvals for November are predicted at 65.40K. Forex traders can compare this to UK Mortgage Approvals for October, which were reported at 67.20K.
The final UK Markit/CIPS Manufacturing PMI for December is predicted at 57.6. Forex traders can compare this to the UK Markit/CIPS Manufacturing PMI for November, reported at 58.1.
The forecast for the GBP/JPY turned bearish amid a decrease in short-term bullish momentum and mixed economic reports. Adding to the bearish outlook is the Ichimoku Kinko Hyo Cloud, which maintains a neutral stance, and traders should monitor the Senkou Span B for potential bearish development. The Tenkan-sen moves higher, but the Kijun-sen flatlined, suggesting a rise in volatility ahead. After the CCI moved into extreme overbought territory, it moved lower while this currency pair advanced. It created a negative divergence, and a breakdown below 100 could trigger more selling pressure. Can bears capitalize on the rise in downside pressures and force 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 155.450 to 156.450 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 155.900
- Take Profit Zone: 150.950 – 151.900
- Stop Loss Level: 157.000
Should price action for the GBP/JPY breakout above 156.450, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 157.000
- Take Profit Zone: 158.200 – 158.650
- Stop Loss Level: 156.450
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