Source: PaxForex Premium Analytics Portal, Fundamental Insight
Foreign Buying of Japanese Bonds for the period ending August 5th came in at ¥438.8B, and Foreigners Buying of Japanese Stocks at -¥59.4B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending July 29th, reported at ¥211.7B, and Foreigners Buying of Japanese Stocks at ¥195.7B.
The Japanese PPI for July increased by 0.1% monthly and 3.6% annualized. Economists predicted a rise of 0.2% and 3.5%. Forex traders can compare this to the Japanese PPI for June, which decreased by 0.1% monthly and accelerated by 4.3% annualized.
US Initial Jobless Claims for the week of August 5th are predicted at 230K, and US Continuing Claims for the week of July 29th at 1,710K. Forex traders can compare this to US Initial Jobless Claims for the week of July 29th, reported at 227K, and US Continuing Claims for the week of July 22nd at 1,700K.
The US CPI for July is predicted to increase by 0.2% monthly and 3.3% annualized. Forex traders can compare this to the US CPI for June, which rose by 0.2% monthly and 3.0% annualized. The US Core CPI for July is predicted to expand by 0.2% monthly and 4.8% annualized. Forex traders can compare this to the US Core CPI for June, which rose by 0.2% monthly and 4.8% annualized.
US Real Earnings for July are predicted to decrease by 0.1% monthly. Forex traders can compare this to US Real Earnings for June, which rose 0.5% monthly.
US Natural Gas Inventories for the week ending August 4th are predicted at 25B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending July 28th, reported at 14B cubic feet.
The US Monthly Budget Statement for July is predicted at -$109.3B. Forex traders can compare this to the US Monthly Budget Statement for June, reported at -$228.0B.
The forecast for the USD/JPY turned cautiously bearish after this currency pair advanced into an area where the Bank of Japan may intervene. The Ichimoku Kinko Hyo Cloud performed a bullish crossover but is vulnerable to a reversal. Volatility could rise after the Tenkan-sen spiked while the Kijun-sen moved lower. Traders should also monitor the CCI in extreme overbought territory where it set a lower high and a negative divergence has formed. A breakdown below 100 could trigger a correction in price action. Can bears regain control over the USD/JPY and pressure 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 USD/JPY remain inside the or breakdown below the 143.500 to 144.650 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 144.000
- Take Profit Zone: 140.350 – 141.150
- Stop Loss Level: 145.00
Should price action for the USD/JPY breakout above 144.650, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 145.00
- Take Profit Zone: 145.650 – 146.000
- Stop Loss Level: 144.650
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