Source: PaxForex Premium Analytics Portal, Fundamental Insight

New Zealand Food Prices for May decreased by 0.8% monthly. Forex traders can compare this to New Zealand Food Prices for April, which increased by 1.0% monthly. New Zealand Permanent/Long-Term Migration for April was reported at 220. Forex traders can compare this to Permanent/Long-Term Migration for March, which was reported at 10,990. External Migration & Visitors for April decreased by 99.4% monthly. Forex traders can compare this to External Migration & Visitors for March, which decreased by 53.6% monthly.

Chinese Retail Sales for May decreased by 2.8% annualized. Economists predicted a decrease of 2.0% annualized. Forex traders can compare this to Chinese Retail Sales for April, which decreased by 7.5% annualized. Chinese Industrial Production for May increased by 4.4% annualized. Economists predicted an increase of 5.0% annualized. Forex traders can compare this to Chinese Industrial Production for April, which increased by 3.9% annualized. Chinese Fixed Assets ex Rural for May decreased by 6.3% annualized. Economists predicted a decrease of 5.9% annualized. Forex traders can compare this to Chinese Fixed Assets ex Rural for April, which decreased by 10.3% annualized. The Chinese Surveyed Jobless Rate for May was reported at 5.9%. Forex traders can compare this to the Chinese Surveyed Jobless Rate for April, which was reported at 6.0%. The Japanese Tertiary Industry Index for April decreased by 6.0% monthly. Forex traders can compare this to the Japanese Tertiary Industry Index for March, which increased by 3.8% monthly.

The NZD/JPY forecast continues its bearish trajectory. Global Covid-19 infections are surging after most countries lifted lockdown measures. Fears of local lockdowns and the negative impact on economies are adding to safe-haven demand in the Japanese Yen. New Zealand’s domestic economy is unable to provide the necessary demand to provide for its citizens, increasing bearish momentum in the New Zealand Dollar. Will bears use the perfect storm to force an accelerated sell-off into its horizontal support area inside of the Ichimoku Kinko Hyo Cloud? 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 68.500 to 69.500 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 68.750
• Take Profit Zone: 63.450 – 64.600
• Stop Loss Level: 69.750

Should price action for the NZD/JPY breakout above 69.500 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 69.750
• Take Profit Zone: 71.250 – 71.650
• Stop Loss Level: 69.250

Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.