Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Current Account Balance for the first quarter came in at -NZ$4.36B quarterly and -NZ$27.64B annualized, with the Current Account-to-GDP Ratio at -6.8%. Forex traders can compare this to the New Zealand Current Account Balance for the fourth quarter, reported at -NZ$7.84B quarterly and -NZ$27.80B annualized, with the Current Account-to-GDP Ratio at -6.9%.
The Japan Reuters Tankan Index for June came in at 6. Forex traders can compare this to the Japan Reuters Tankan Index for May, reported at 9.
The Japanese Trade Balance for May came in at -¥1,221.3B, and the Japanese Adjusted Trade Balance at -¥0.62T. Economists predicted a reading of -¥1,300.0B and -¥0.64T. Forex traders can compare this to the Japanese Trade Balance for April, reported at -¥465.6B, and the Japanese Adjusted Trade Balance at -¥0.58T. Exports for May surged by 13.5% annualized, and Imports accelerated by 9.5% annualized. Economists predicted an increase of 10.4% and 13.0%. Forex traders can compare this to Exports for April, which rose by 8.3% annualized, and Imports, which expanded by 8.3% annualized.
The forecast for the NZD/JPY turned cautiously bearish after this currency pair began losing upside momentum at its horizontal resistance area near all-time highs. The Tenkan-sen has flatlined, with the Kijun-sen sen drifting higher, suggesting more short-term volatility ahead as bulls and bears fight for control. The Ichimoku Kinko Hyo Cloud adds to signs of deflating bullishness, with the Senkou Span A and the Senkou Span B flat and vulnerable to a contraction. A narrowing Ichimoku Kinko Hyo Cloud will increase downside pressure. Traders should also monitor the CCI following its breakdown from extreme overbought territory. This technical indicator has plenty of downside potential. Can bears regain control over the NZD/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 NZD/JPY remain inside the or breakdown below the 96.550 to 97.000 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 96.750
- Take Profit Zone: 94.850 – 95.350
- Stop Loss Level: 97.250
Should price action for the NZD/JPY break out above 97.000, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 97.250
- Take Profit Zone: 97.750 – 98.000
- Stop Loss Level: 97.000
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