Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary Japanese Current Account Balance for September came in at ¥1.717T, and the Preliminary Japanese Adjusted Current Account Balance at ¥1.270T. Economists predicted a reading of ¥3.263T and ¥2.800T. Forex traders can compare this to the Japanese Current Account Balance for August, reported at ¥3.933T, and to the Japanese Adjusted Current Account Balance at ¥3.150T.
Japanese Bank Lending for September increased by 2.7% annualized. Economists predicted a rise of 2.7%. Forex traders can compare this to Japanese Bank Lending for August, which rose 2.7% annualized.
The Japanese Eco Watchers Survey Current Index for September came in at 47.5. Economists predicted a figure of 47.2. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for August, reported at 49.0.
New Zealand Inflation Expectations for the fourth quarter increased by 2.10% quarterly. Forex traders can compare this to New Zealand Inflation Expectations for the third quarter, which rose 2.00% quarterly.
The forecast for the NZD/JPY has turned cautiously bearish after this currency pair advanced into its horizontal resistance area. The Tenkan-sen and the Kijun-sen have flatlined, suggesting the absence of short-term upside momentum. The Senkou Span A of the Ichimoku Kinko Hyo Cloud shows signs of entering a sideways trend, and the Senkou Span B is flat, confirming deflating medium-term bullishness. Traders should also monitor the CCI after recording a lower high in extreme overbought territory followed by a breakdown. A drop by this technical indicator below zero could spark the next sell-off. 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 91.400 to 92.000 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 91.700
- Take Profit Zone: 88.450 – 89.250
- Stop Loss Level: 92.450
Should price action for the NZD/JPY break out above 92.000, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 92.450
- Take Profit Zone: 93.000 – 93.450
- Stop Loss Level: 92.000
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