Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand GDP for the first quarter decreased by 0.1% quarterly and increased by 2.2% annualized. Economists predicted a drop of 0.1% and a rise of 2.6%. Forex traders can compare this to the New Zealand GDP for the third quarter, which contracted by 0.7% quarterly and expanded by 2.3% annualized. The New Zealand GDP Annual Average for the first quarter rose by 2.9% quarterly, and GDP Expenditure contracted by 0.2% quarterly. Economists predicted an increase of 2.5% and 2.1%. Forex traders can compare this to the New Zealand GDP Annual Average for the fourth quarter, which increased by 2.7% quarterly, and GDP Expenditure, which decreased by 0.9% quarterly.
The Japanese Trade Balance for May came in at -¥1,372.5B, and the Japanese Adjusted Trade Balance at -¥0.78T. Economists predicted a reading of -¥1,331.9B and -¥1.12T. Forex traders can compare this to the Japanese Trade Balance for April, reported at -¥432.3B, and the Japanese Adjusted Trade Balance at -¥1.04T. Exports for May rose by 0.6% annualized, and Imports plunged by 9.9%. Economists predicted a contraction of 0.8% and 10.3%. Forex traders can compare this to Exports for April, which increased by 2.6% annualized, and Imports, which dropped by 2.3%.
Japanese Machine Orders for April rose 5.5% monthly and decreased by 5.9% annualized. Economists predicted a rise of 3.0% and a plunge of 8.0%. Forex traders can compare this to Japanese Machine Orders for March, which contracted by 3.9% monthly and 3.5% annualized.
Foreign Buying of Japanese Bonds for the period ending June 10th came in at ¥14.7B, and Foreigners Buying of Japanese Stocks at ¥1,324.9B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending June 3rd, reported at ¥521.3B, and to Foreigners Buying of Japanese Stocks at ¥608.7B.
The Japanese Tertiary Industry Index for April rose 1.2% monthly. Economists predicted an increase of 0.5% monthly. Forex traders can compare this to the Japanese Tertiary Industry Index for March, which dropped 1.5% monthly.
The forecast for the NZD/JPY turned cautiously bearish following its price spike, despite New Zealand entering a technical recession. A double-top formation emerged at a major horizontal resistance area. Bulls and bears will fight for directional control, and the Kijun-sen and Tenkan-sen move higher, with the Ichimoku Kinko Hyo Cloud in a sideways pattern. Traders should also monitor the CCI in extreme overbought territory. A breakdown below 100 could provide bears the necessary spark for a counter-trend move. Can bears overpower bulls and pressure the NZD/JPY into a correction assisted by profit-taking? 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 86.950 to 87.650 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 87.400
- Take Profit Zone: 84.400 – 85.300
- Stop Loss Level: 87.950
Should price action for the NZD/JPY breakout above 87.950, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 88.150
- Take Profit Zone: 89.000 – 89.800
- Stop Loss Level: 87.950
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