Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Tankan Large Manufacturers Index for the third quarter came in at 9, and the Tankan Large Manufacturers Outlook at 10. Economists predicted a figure of 6 and 5. Forex traders can compare this to the Tankan Large Manufacturers Index for the second quarter, reported at 5, and the Tankan Large Manufacturers Outlook at 9. The Tankan Large Non-Manufacturers Index for the third quarter was reported at 27, and the Tankan Large Non-Manufacturers Outlook at 21. Economists predicted a figure of 24 and 22. Forex traders can compare this to the Tankan Large Non-Manufacturers Index for the second quarter, reported at 23, and the Tankan Large Non-Manufacturers Outlook at 20. The Tankan Small Manufacturers Index for the third quarter came in at -5, and the Tankan Small Manufacturers Outlook at -2. Forex traders can compare this to the Tankan Small Manufacturers Index for the second quarter, reported at -5, and the Tankan Small Manufacturers Outlook at -1. The Tankan Small Non-Manufacturers Index for the third quarter came in at 12, and the Tankan Small Non-Manufacturers Outlook at 8. Forex traders can compare this to the Tankan Small Non-Manufacturers Index for the second quarter, reported at 11, and the Tankan Small Non-Manufacturers Outlook at 7. The Japanese Tankan Large All Industry Capex Index for the third quarter increased by 13.6% quarterly, and the Japanese Tankan Small All Industry Capex Index by 8.0% quarterly. Forex traders can compare this to the Japanese Tankan Large All Industry Capex Index for the second quarter, which expanded by 13.4% quarterly, and the Japanese Tankan Small All Industry Capex Index by 2.4% quarterly.
UK Nationwide House Prices for September came in flat at 0.0% monthly and dropped by 5.3% annualized. Economists predicted a contraction of 0.4% and 5.7%. Forex traders can compare this to UK Nationwide House Prices for August, which decreased 0.8% monthly and 5.3% annualized.
The UK S&P500 Global/CIPS Manufacturing PMI for September is predicted at 44.2. Forex traders can compare this to the UK S&P500 Global/CIPS Manufacturing PMI for August, reported at 43.0.
The forecast for the GBP/JPY is cautiously bearish amid the threat of intervention by the Bank of Japan. Following a bearish crossover, the Kijun-sen has flatlined, but the Tenkan-sen continues to move lower. The Ichimoku Kinko Hyo Cloud shows bearishness, with the Senkou Span B flat and the Senkou Span A moving lower. Traders should monitor the CCI following its breakout from extreme oversold territory. This technical indicator moved above zero, but a reversal could spark bears to continue to the preceding sell-off. 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 182.100 to 183.300 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 182.700
- Take Profit Zone: 176.300 – 177.400
- Stop Loss Level: 184.150
Should price action for the GBP/JPY breakout above 183.300, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 184.150
- Take Profit Zone: 185.750 – 186.750
- Stop Loss Level: 183.300
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