Japanese Labor Cash Earnings for February increased by 1.0% annualized and Japanese Real Cash Earnings increased by 0.5% annualized. Economists predicted an increase of 0.4% and a decrease of 0.7%. Forex traders can compare this to Japanese Labor Cash Earnings for January, which increased by 1.5% annualized and to Japanese Real Cash Earnings, which increased by 0.7% annualized. Japanese Household Spending for February increased by 0.8% monthly and decreased 0.3% annualized. Economists predicted a decrease of 0.2% and 3.9% annualized. Forex traders can compare this to Japanese Household Spending for January, which decreased by 1.6% monthly and by 3.9% annualized.
The Preliminary Japanese Leading Index for February was reported at 92.1, and the Preliminary Japanese Coincident Index was reported at 95.8. Economists predicted a figure of 92.0 and 95.7. Forex traders can compare this to the Japanese Leading Index for January, which was reported at 90.5 and to the Japanese Coincident Index, which was reported at 95.2. US JOLTS Job Openings for February are predicted at 6.476M. Forex traders can compare this to US JOLTS Job Openings for January, which were reported at 6.963M. US Consumer Credit for February is predicted at $14.000B. Forex traders can compare this to US Consumer Credit for January, which was reported at $12.021B.
The USD/JPY forecast remains negative after a lower high completed the formation of a bearish chart pattern. Price action is now faced with the Tenkan-sen resistance level of the Ichimoku Kinko Hyo indicator. Japanese data this morning points towards consumer weakness. Global risk related to Covid-19 continues to dominate. Will bears force a new sell-off? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the USD/JPY remain inside the or breakdown below the 108.650 to 109.450 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 109.000
- Take Profit Zone: 101.150 – 102.250
- Stop Loss Level: 110.000
Should price action for the USD/JPY breakout above 109.450 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 110.000
- Take Profit Zone: 111.550 – 112.200
- Stop Loss Level: 109.450
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