Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Food Prices for August increased 0.3% monthly and 2.4% annualized. Forex traders can compare this to New Zealand Food Prices for July, which increased 1.3% monthly and 2.8% annualized.
The Japanese BSI All Large Industry Index for the third quarter was reported at 7.0 quarterly. Forex traders can compare this to the Japanese BSI All Large Industry Index for the second quarter, reported at -1.4. The Japanese PPI for August was reported flat at 0.0% monthly and increased 5.5% annualized. Economists predicted an increase of 0.2% and 4.6%. Forex traders can compare this to the Japanese PPI for July, which increased 1.1% monthly and 5.6% annualized.
The forecast for the NZD/JPY turned bearish after the recent rally stalled at resistance, and selling pressure increased. Price action pushed above the descending Ichimoku Kinko Hyo Cloud, which caused it to stabilize, but the Kijun-sen remains flat, suggesting a lack of bullish momentum. The Tenkan-sen continues its advance, but after the CCI moved out of extreme overbought territory, traders should expect a reversal. Can bears regain control over the NZD/JPY and force this currency pair 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 77.700 to 78.400 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 78.150
- Take Profit Zone: 75.450 – 75.950
- Stop Loss Level: 78.750
Should price action for the NZD/JPY breakout above 78.400, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 78.750
- Take Profit Zone: 79.200 – 79.350
- Stop Loss Level: 78.400
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
