Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Retail Sales for the third quarter came in flat at 0.0% quarterly and dropped by 3.4% annualized. Forex traders can compare this to New Zealand Retail Sales for the second quarter, which contracted by 1.0% quarterly and 3.5% annualized.
The Japanese National CPI for October increased by 0.7% monthly and 3.3% annualized. Forex traders can compare this to the Japanese National CPI for September, which rose by 0.3% monthly and 3.0% annualized. The Japanese National Core CPI for October increased by 2.9% annualized. Economists predicted a rise of 3.0% annualized. Forex traders can compare this to the Japanese National Core CPI for September, which expanded by 2.8% annualized. The Japanese National CPI Excluding Fresh Food for October increased by 4.0% annualized. Forex traders can compare this to the Japanese National CPI Excluding Fresh Food for September, which rose 4.2% annualized.
Foreign Buying of Japanese Bonds for the period ending November 18th came in at ¥2.5B, and Foreigners Buying of Japanese Stocks at ¥285.9B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending November 11th, reported at -¥65.8B, and to Foreigners Buying of Japanese Stocks at ¥384.2B.
The Preliminary Japanese Jibun Bank Manufacturing PMI for November came in at 48.1, the Preliminary Japanese Jibun Bank Services PMI at 51.7, and the Preliminary Japanese Jibun Bank Composite PMI at 50.0. Forex traders can compare this to the Japanese Jibun Bank Manufacturing PMI for October, reported at 48.7, the Japanese Jibun Bank Services PMI at 51.6, and the Japanese Jibun Bank Composite PMI at 50.5.
The Final Japanese Leading Index for September came in at 108.9, and the Final Japanese Coincident Index at 114.7. Forex traders can compare this to the Japanese Leading Index for August, reported at 109.2, and the Japanese Coincident Index at 114.6.
The forecast for the NZD/JPY turned bearish after this currency pair advanced into its horizontal resistance area. Confirming the lack of bullishness are the flat Kijun-sen and Tenkan-sen. Volatility could increase with the Senkou Span A and the Senkou Span B of the arrow Ichimoku Kinko Hyo cloud drifting higher, vulnerable to a reversal and renewed bearish crossover. Traders should also monitor the CCI in extreme overbought territory. This technical indicator formed a negative divergence and is approaching a breakdown that could spark a sell-off. Can bears overpower bulls and force the NZD/JPY 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 90.200 to 90.550 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 90.400
- Take Profit Zone: 88.000 – 88.600
- Stop Loss Level: 91.000
Should price action for the NZD/JPY breakout above 90.550, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 91.000
- Take Profit Zone: 92.000 – 92.400
- Stop Loss Level: 90.550
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