The Preliminary Japanese GDP for the first quarter decreased by 0.9% quarterly and by 3.4% annualized. Economists predicted a decrease of 1.2% and 4.6% annualized. Forex traders can compare this to the Japanese GDP for the fourth quarter, which decreased by 1.9% quarterly and by 7.3% annualized. Preliminary Private Consumption for the first quarter decreased by 0.7% quarterly, and Preliminary Business Spending decreased by 0.5% quarterly. Economists predicted a decrease of 1.6% and 1.5%. Forex traders can compare this to Private Consumption for the fourth quarter, which decreased by 2.9% quarterly and to Business Spending, which decreased by 4.8% quarterly.
The Singapore Trade Balance for April was reported at $2.630B. Forex traders can compare this to the Singapore Balance for March, which was reported at $3.180B. Non-Oil Exports for April decreased by 5.8% monthly and increased by 9.7% annualized. Forex traders can compare this to Non-Oil Exports for March, which increased by 12.8% monthly and by 17.6% annualized.
The SGD/JPY forecast remains bearish after this morning’s economic data showed Singapore exports contracting in April, while the Japanese GDP contraction exceeded expectations. This currency pair remains pressured by the Ichimoku Kinko Hyo cloud, and the Kijun-sen is providing an additional resistance level. Will bears push price action into its horizontal support area, or can bulls advance through the cloud? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the SGD/JPY remain inside the or breakdown below the 74.850 to 75.450 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 75.100
- Take Profit Zone: 73.100 – 73.750
- Stop Loss Level: 75.550
Should price action for the SGD/JPY breakout above 75.450 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 75.550
- Take Profit Zone: 76.000 – 76.550
- Stop Loss Level: 75.100
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