Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Electronic Retail Card Spending for August decreased by 7.9% monthly and by 0.8% annualized. Forex traders can compare this to New Zealand Electronic Retail Card Spending for July, which increased by 1.2% monthly and by 11.4% annualized. Japanese Machine Orders for July increased by 6.3% monthly and decreased by 16.2% annualized. Economists predicted an increase of 1.9% and a decrease of 18.3%. Forex traders can compare this to Japanese Machine Orders for June, which decreased by 7.6% monthly and by 22.5% annualized.
The forecast for the NZD/JPY turned bearish after this currency pair accelerated out its Ichimoku Kinko Hyo Cloud. New Zealand reported an unexpected collapse in electronic retail card spending, while Japanese core machinery orders for July surprised to the upside. As many countries brace for a new Covid-19 infection wave into the winter season, safe-haven demand is expected to provide a bearish driver for price action. It takes a pause just above its flatlining Tenkan-sen, but will bears be able to force it into a retreat? 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 70.800 to 71.250 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 71.000
- Take Profit Zone: 69.000 – 69.400
- Stop Loss Level: 71.450
Should price action for the NZD/JPY breakout above 71.250 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 71.450
- Take Profit Zone: 71.950 – 72.250
- Stop Loss Level: 71.250
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