Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese Trade Balance for October came in at -¥461.2B, and the Japanese Adjusted Trade Balance at -¥0.36T. Economists predicted a reading of -¥360.4B and -¥0.15T. Forex traders can compare this to the Japanese Trade Balance for September, reported at -¥294.1B, and the Japanese Adjusted Trade Balance at -¥0.27T. Exports for October increased by 3.1% annualized and Imports by 0.4% annualized. Economists predicted an acceleration of 2.2% and a decrease of 0.3%. Forex traders can compare this to Exports for September, which contracted by 1.7% annualized, and Imports, which increased by 1.8% annualized.
The UK CPI for October increased 0.6% monthly and 2.3% annualized. Forex traders can compare this to the UK CPI for September, which was flat at 0.0% monthly and expanded by 1.7% annualized. The UK Core CPI for October rose 0.4% monthly and 3.3% annualized. Forex traders can compare this to the UK CPI for September, which accelerated 0.1% monthly and 3.2% annualized.
The UK PPI Input for October increased by 0.1% monthly and decreased by 2.3% annualized. Forex traders can compare this to the UK PPI Input for September, which dropped by 0.5% monthly and 1.9% annualized. The UK PPI Output for October was flat at 0.0% monthly and contracted 0.8% annualized. Forex traders can compare this to the UK PPI Output for September, which decreased by 0.4% monthly and 0.6% annualized. The UK PPI Core Output for October increased by 0.3% monthly and 1.7% annualized. Forex traders can compare this to the UK PPI Core Output for September, which was flat at 0.0% monthly and expanded by 1.4% annualized.
The UK RPI for October increased by 0.5% monthly and 3.4% annualized. Forex traders can compare this to the UK RPI for September, which contracted by 0.3% monthly and accelerated by 2.7% annualized. The UK Core RPI for October rose by 0.5% monthly and 2.8% annualized. Forex traders can compare this to the UK Core RPI for September, which decreased 0.4% monthly and expanded 2.0% annualized.
The UK House Price Index for October is predicted to rise 2.9% annualized. Forex traders can compare this to the UK House Price Index for September, which accelerated by 2.8% annualized.
The forecast for the GBP/JPY is cautiously bearish after this currency pair advanced into its horizontal resistance area. The descending Tenkan-sen completed a bearish crossover below the flat Kijun-sen, adding to short-term selling pressure. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are flat, suggesting the absence of medium-term bullishness. Traders should also monitor the CCI following its breakout from extreme oversold territory. This technical indicator may temporarily eclipse the zero barrier before reversing to lead price action lower. 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 197.100 to 198.100 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 197.700
- Take Profit Zone: 191.250 – 192.600
- Stop Loss Level: 198.450
Should price action for the GBP/JPY breakout above 198.100, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 198.450
- Take Profit Zone: 199.100 – 200.000
- Stop Loss Level: 198.100
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