Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese National CPI for September decreased by 0.3% monthly and increased by 2.5% annualized. Forex traders can compare this to the Japanese National CPI for August, which rose 0.5% monthly and 3.0% annualized. The Japanese National Core CPI for September increased by 2.4% annualized. Forex traders can compare this to the Japanese National Core CPI for August, which rose 2.8% annualized.
Foreign Buying of Japanese Bonds for the period ending October 12th came in at -¥363.1B, and Foreigners Buying of Japanese Stocks at ¥968.4B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending October 5th, reported at ¥669.2B, and to Foreigners Buying of Japanese Stocks at ¥910.1B.
UK Retail Sales for September increased by 0.3% monthly and 3.9% annualized. Economists predicted a contraction of 0.3% and a rise of 3.2%. Forex traders can compare this to UK Retail Sales for August, which expanded by 1.0% monthly and 2.3% annualized. UK Core Retail Sales for September rose by 0.3% monthly and 4.0% annualized. Economists predicted a drop of 0.3% and an acceleration of 3.2%. Forex traders can compare this to UK Core Retail Sales for August, which rose by 1.1% monthly and 2.2% annualized.
The forecast for the GBP/JPT has turned cautiously bearish after this currency pair started to drift sideways at its horizontal resistance area over the past thirteen trading sessions. The Tenkan-sen and the Kijun-sen have flatlined, suggesting the absence of short-term upside momentum. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are also flat and narrow, vulnerable to a bearish crossover that could spike bearish pressures. Traders should also monitor the CCI in extreme overbought territory, where a negative divergence has formed. A breakdown below 100 could trigger the next sell-off, and this technical indicator has plenty of downside potential. Can bears regain control over 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 194.650 to 195.950 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 195.450
- Take Profit Zone: 189.850 – 191.250
- Stop Loss Level: 196.850
Should price action for the GBP/JPY breakout above 195.950, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 196.850
- Take Profit Zone: 199.100 – 200.000
- Stop Loss Level: 195.950
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