Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese National CPI for May increased 0.3% monthly and decreased 0.1% annualized. Forex traders can compare this to the Japanese National CPI for April, which decreased 0.4% monthly and 0.4% annualized. The Japanese National Core CPI for May increased by 0.1% annualized. Economists predicted an increase of 0.1%. Forex traders can compare this to the Japanese National Core CPI for April, which decreased 0.1% annualized. The Bank of Japan decided to keep interest rates at -0.10%. Forex traders can compare this to the previous Bank of Japan interest rate decision where interest rates were left unchanged at -0.10%.
UK Retail Sales for May decreased 1.4% monthly and increased 24.6% annualized. Economists predicted an increase of 1.6% and 29.0%. Forex traders can compare this to UK Retail Sales for April, which increased 9.2% monthly and 42.4% annualized. UK Core Retail Sales for May increased 9.1% monthly and 21.7% annualized. Economists predicted an increase of 1.5% and 27.3%. Forex traders can compare this to UK Core Retail Sales for April, which increased 9.0% monthly and 37.7% annualized.
The forecast for the GBP/JPY slowly turns bullish after price action corrected and is approaching its ascending Ichimoku Kinko Hyo Cloud. Traders should expect more volatility ahead with the Kijun-sen and the Tenkan-sen descending. The CCI plunged deep into extreme oversold territory, suggesting that selling pressure will fade, allowing this currency pair to stabilize. Will bulls have enough power to pressure the GBP/JPY 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 152.400 to 153.400 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 152.750
- Take Profit Zone: 155.600 – 156.100
- Stop Loss Level: 151.900
Should price action for the GBP/JPY breakdown below 152.400, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 151.900
- Take Profit Zone: 150.100 – 150.800
- Stop Loss Level: 152.400
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
