Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese Trade Balance for September was reported at -¥622.8B. Economists predicted a figure of -¥519.2B. Forex traders can compare this to the Japanese Trade Balance for August, reported at -¥637.2B. The Japanese Adjusted Trade Balance for September was reported at -¥0.62T. Forex traders can compare this to the Japanese Adjusted Trade Balance for August, reported at -¥0.34T. Exports for September increased 13.0% annualized, and Imports increased 38.6% annualized. Economists predicted an increase of 11.0% and 34.4%. Forex traders can compare this to Exports for August, which increased 26.2% annualized, and Imports which increased 44.7% annualized.
The UK CPI for September increased 0.3% monthly and 3.1% annualized. Economists predicted an increase of 0.4% and 3.2%. Forex traders can compare this to the UK CPI for August, which increased 0.7% monthly and 3.2% annualized. The UK Core CPI for September increased 0.4% monthly and 2.9% annualized. Economists predicted an increase of 0.5% and 3.0%. Forex traders can compare this to the UK CPI for August, which increased 0.7% monthly and 3.1% annualized.
The UK PPI Input for September increased 0.4% monthly and 11.4% annualized. Economists predicted an increase of 1.0% and 11.6%. Forex traders can compare this to the UK PPI Input for August, which increased 0.5% monthly and 11.2% annualized. The UK PPI Output for September increased 0.5% monthly and 6.7% annualized. Economists predicted an increase of 0.5% and 6.8%. Forex traders can compare this to the UK PPI Output for August, which increased 0.7% monthly and 6.0% annualized. The UK PPI Core Output for September increased 0.5% monthly and 5.9% annualized. Forex traders can compare this to the UK PPI Core Output for August, which increased 0.9% monthly and 5.4% annualized.
The UK RPI for September increased 0.4% monthly and 4.9% annualized. Economists predicted an increase of 0.2% and 4.7%. Forex traders can compare this to the UK RPI for August, which increased 0.6% monthly and 4.8% annualized. The UK Core RPI for September increased 0.4% monthly and 5.0% annualized. Forex traders can compare this to the UK Core RPI for August, which increased 0.7% monthly and 4.9% annualized.
The forecast for the GBP/JPY turned bearish as the magnitude of the current advance is unsustainable and bullish momentum is fading. Despite the strong rally spanning almost 1,000 pips, the Ichimoku Kinko Hyo Cloud is narrow and flat. The Kijun-sen started to lose upside momentum and is in the process of flatlining, while the Tenkan-sen continues its ascend. Traders should wait for the CCI to move out of extreme overbought territory and cross below 100 after a negative divergence formed. Can bears wrestle control from bulls and force the GBP/JPY into a correction until it reaches 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 157.650 to 158.850 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 158.150
- Take Profit Zone: 152.600 – 153.350
- Stop Loss Level: 159.850
Should price action for the GBP/JPY breakout above 158.850, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 159.850
- Take Profit Zone: 162.150 – 162.650
- Stop Loss Level: 158.850
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