Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Permanent/Long-Term Migration for August came in at 47. Forex traders can compare this to Permanent/Long-Term Migration for July, reported at 475. External Migration & Visitors for August increased by 4,748.8% monthly. Forex traders can compare this to External Migration & Visitors for July, which rose 344.2% monthly. Visitor Arrivals for August decreased by 3.3% monthly. Forex traders can compare this to Visitor Arrivals for July, which surged 41.8% monthly.
The Japan Reuters Tankan Index for October came in at 5. Forex traders can compare this to the Japan Reuters Tankan Index for September, reported at 10.
Japanese Machine Orders for August dropped 5.8% monthly and rose 9.7% annualized. Economists predicted a decrease of 2.3% and a rise of 12.6%. Forex traders can compare this to Japanese Machine Orders for July, which surged 5.3% monthly and 12.8% annualized.
Inflation and the slowing global economy remain the primary catalysts for financial markers. Forex traders will get crucial PPI and CPI data out of the US today and tomorrow, which could show inflation remains near four-decade peaks. The strong US Dollar is causing negative ripple effects throughout the global financial system, but the US Federal Reserve is expected to keep hiking interest rates. The NZD/JPY emerged as a trade to consider, as Japan maintains negative interest rates as New Zealand joins the rest of the G7 in hiking interest rates into a weakening economy. Australia slowed its pace of hikes, and New Zealand remains a wildcard for its next central bank meeting. Given current trends and rising food prices that could benefit agricultural exports, the New Zealand Dollar could rally against the Japanese Yen.
The forecast for the NZD/JPY turned cautiously bullish after this currency pair stabilized at its horizontal support area, and bullish momentum began to accumulate. Confirming the lack of bearish pressures is the flat Kijun-sen, while the Tenkan-sen has begun to drift higher. After the Ichimoku Kinko Hyo Cloud took one step lower, it started to show signs of stabilizing with a flat Senkou Span B. The Senkou Span A continues to move lower, suggesting volatility could increase. Traders should monitor the CCI, which recorded a higher low and completed a breakout from extreme oversold territory. A move above zero could trigger more upside in this currency pair. Can bulls regain complete control over the NZD/JPY and pressure 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 81.200 to 82.200 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 81.750
- Take Profit Zone: 84.350 – 84.800
- Stop Loss Level: 80.550
Should price action for the NZD/JPY breakdown below 81.200, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 80.550
- Take Profit Zone: 79.000 – 79.450
- Stop Loss Level: 81.200
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