Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Current Account Balance for the third quarter came in at -NZ$10.10B quarterly and -NZ$29.65B annualized, with the Current Account-to-GDP Ratio at -7.9%. Economists predicted a figure of -NZ$10.00B, -NZ$29.60B, and -8.0%. Forex traders can compare this to the New Zealand Current Account Balance for the second quarter, reported at -NZ$5.42B quarterly and -NZ$27.82B annualized, with the Current Account-to-GDP Ratio at -7.7%.
Japanese Machine Orders for October rose 5.4% monthly and 0.4% annualized. Economists predicted a rise of 2.6% and 2.6%. Forex traders can compare this to Japanese Machine Orders for September, which plunged by 4.6% monthly and increased by 2.9% annualized.
The Tankan Large Manufacturers Index for the fourth quarter came in at 7, and the Tankan Large Manufacturers Outlook at 6. Economists predicted a figure of 6 and 6. Forex traders can compare this to the Tankan Large Manufacturers Index for the third quarter, reported at 8, and the Tankan Large Manufacturers Outlook at 9. The Tankan Large Non-Manufacturers Index for the fourth quarter was reported at 19, and the Tankan Large Non-Manufacturers Outlook at 11. Economists predicted a figure of 17 and 16. Forex traders can compare this to the Tankan Large Non-Manufacturers Index for the third quarter, reported at 14, and the Tankan Large Non-Manufacturers Outlook at 11. The Tankan Small Manufacturers Index for the fourth quarter came in at -2, and the Tankan Small Manufacturers Outlook at -5. Economists predicted a figure of -6 and -7. Forex traders can compare this to the Tankan Small Manufacturers Index for the third quarter, reported at -4, and the Tankan Small Manufacturers Outlook at -5. The Tankan Small Non-Manufacturers Index for the fourth quarter came in at 6, and the Tankan Small Non-Manufacturers Outlook at -1. Economists predicted a figure of 5 and 2. Forex traders can compare this to the Tankan Small Non-Manufacturers Index for the third quarter, reported at 2, and the Tankan Small Non-Manufacturers Outlook at -3. The Japanese Tankan Large All Industry Capex Index for the fourth quarter increased by 19.2% quarterly, and the Japanese Tankan Small All Industry Capex Index by 3.8% quarterly. Economists predicted a rise of 20.9% and 4.3%. Forex traders can compare this to the Japanese Tankan Large All Industry Capex Index for the third quarter, which expanded by 21.5% quarterly, and the Japanese Tankan Small All Industry Capex Index, by 1.3% quarterly.
The forecast for the NZD/JPY remains bearish after the horizontal resistance area rejected this currency pair. Confirming the lack of short-term bullishness are the flat Kijun-sen and the Tenkan-sen. Adding to downside pressures is the flat Ichimoku Kinko Hyo Cloud, which could start to contract and add bearish momentum. Traders should monitor the CCI following its breakdown from extreme overbought territory. It has more downside potential, and a move below zero could accelerate a pending correction. Can bears overpower bulls and force the NZD/JPY 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 NZD/JPY remain inside the or breakdown below the 87.100 to 87.750 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 87.300
- Take Profit Zone: 84.200 – 85.050
- Stop Loss Level: 88.300
Should price action for the NZD/JPY breakout above 87.750, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 88.300
- Take Profit Zone: 89.000 – 89.800
- Stop Loss Level: 87.750
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