Source: PaxForex Premium Analytics Portal, Fundamental Insight
Foreign Buying of Japanese Bonds for the period ending April 6th came in at ¥346.4B, and Foreigners Buying of Japanese Stocks at ¥1,764.4B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending March 30th, reported at -¥1,660.5B, and to Foreigners Buying of Japanese Stocks at -¥441.6B.
Japanese Money Stock M2 for March increased by 2.5% annualized, and Japanese M3 Money Supply came in at ¥2,141.1T. Forex traders can compare this to Japanese Money Stock M2 for February, which rose by 2.4% annualized, and Japanese M3 Money Supply, reported at ¥2,140.1T.
US Initial Jobless Claims for the week of April 6th are predicted at 216K. Forex traders can compare this to US Initial Jobless Claims for the week of March 30th, reported at 221K.
The US PPI for March is predicted to rise by 0.3% monthly and by 2.2% annualized. Forex traders can compare this to the US PPI for February, which increased by 0.6% monthly and 1.6% annualized. The US Core PPI for March is predicted to expand by 0.2% monthly and by 2.3% annualized. Forex traders can compare this to the US Core PPI for February, which accelerated by 0.3% monthly and 2.0% annualized.
US Natural Gas Inventories for the week ending April 5th are predicted at 14B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending March 29th, reported at -37B cubic feet.
The United States Department of Agriculture (USDA) World Agricultural Supply and Demand (WASD) Estimates Report report will gain above-average attention given the rise in inflationary pressures, where food prices continue to increase amid a challenging backdrop.
The forecast for the USD/JPY is cautiously bearish as this currency pair continues to push higher despite warnings by the Bank of Japan of an intervention. Many traders thought the 150 level would be where the Bank of Japan would intervene, which is why they have allowed it to drift higher. The Tenkan-sen and the Kijun-sen have flatlines, suggesting the absence of short-term upside momentum. The Ichimoku Kinko Hyo Cloud has narrowed but continues to drift higher. Traders should also monitor the CCI in extreme overbought territory after it spiked to unsustainable levels. A breakdown could trigger the expected correction below 150. Can bears regain control over the USD/JPY and force a correction? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the USDJPY remain inside the or breakdown below the 152.750 to 153.250 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 152.900
- Take Profit Zone: 149.850 – 150.750
- Stop Loss Level: 154.000
Should price action for the USDJPY breakout above 153.250, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 154.000
- Take Profit Zone: 155.000 – 156.000
- Stop Loss Level: 153.250
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