Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Electronic Retail Card Spending for February was flat at 0.0% monthly and surged by 11.7% annualized. Forex traders can compare this to New Zealand Electronic Retail Card Spending for January, which rose by 2.6% monthly and 2.7% annualized.
Foreign Buying of Japanese Bonds for the period ending March 4th came in at -¥168.6B, and Foreigners Buying of Japanese Stocks at -¥595.4B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending February 25th, reported at ¥219.7B, and to Foreigners Buying of Japanese Stocks at -¥403.4B.
The Final Japanese GDP for the fourth quarter was flat at 0.0% quarterly and increased by 0.1% annualized. Economists predicted a rise of 0.2% and 0.8%. Forex traders can compare this to the Japanese GDP for the third quarter, which contracted by 0.3% quarterly and by 0.8% annualized. Final Private Consumption for the fourth quarter rose by 0.3% quarterly, and Final Capital Expenditure decreased by 0.5% quarterly. Economists predicted a rise of 0.5% and a drop of 0.4%. Forex traders can compare this to Private Consumption for the third quarter, which was flat at 0.0% quarterly, and Capital Expenditure, which increased by 1.5% quarterly. Final External Demand for the fourth quarter increased by 0.4% quarterly. Economists predicted a rise of 0.3%. Forex traders can compare this to External Demand for the third quarter, which dropped by 0.6% quarterly. The final GDP Price Index for the fourth quarter rose 1.2% annualized. Forex traders can compare it to the GDP Price Index for the third quarter, which contracted by 0.4% annualized.
Japanese Money Stock M2 for February increased by 2.6% annualized, and Japanese M3 Money Supply came in at ¥2,100.5T. Forex traders can compare this to Japanese Money Stock M2 for January, which rose by 2.7% annualized, and Japanese M3 Money Supply reported at ¥2,093.1T.
Japanese Preliminary Machine Tool Orders for February plunged by 10.7% annualized. Forex traders can compare this to Japanese Machine Tool Orders for January, which contracted by 9.7% annualized.
The forecast for the NZD/JPY turned cautiously bullish after price action retreated into its gradually ascending Ichimoku Kinko Hyo Cloud, which could experience a bullish crossover. Short-term volatility may rise amid the lack of upside pressures, as shown by the flat Kijun-sen and Tenkan-sen. Traders should also monitor the CCI after it recorded a higher in extreme overbought territory followed by a double breakdown. This technical indicator should reach extreme oversold conditions before a breakout can provide the final buy signal. Will bulls withstand bears and regain control over the USD/JPY to push price action into its horizontal resistance 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 breakout above the 83.200 to 84.000 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 83.650
- Take Profit Zone: 85.300 – 86.050
- Stop Loss Level: 82.850
Should price action for the NZD/JPY breakdown below 83.200, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 82.850
- Take Profit Zone: 81.800 – 82.250
- Stop Loss Level: 83.200
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