Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese Corporate Service Price Index for July increased by 2.1% annualized. Economists predicted a rise of 2.2% annualized. Forex traders can compare this to the Japanese Corporate Service Price Index for June, which rose 2.1% annualized.
Foreign Buying of Japanese Bonds for the period ending August 20th came in at -¥79.2B, and Foreigners Buying of Japanese Stocks at ¥28.5B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending August 13th, reported at ¥1,154.7B, and to Foreigners Buying of Japanese Stocks at ¥45.3B.
US Initial Jobless Claims for the week of August 20th are predicted at 253K, and US Continuing Claims for the week of August 13th are predicted at 1,442K. Forex traders can compare this to US Initial Jobless Claims for the week of August 13th, reported at 250K, and US Continuing Claims for the week of August 6th, reported at 1,437K.
The Advanced US GDP for the second quarter is predicted to decrease 0.8% quarterly. Forex traders can compare this to the first quarter GDP, which dropped 1.6% quarterly. The GDP Price Index for the second quarter is predicted to rise 8.7% quarterly, the PCE Price Index by 7.1%, and the Core PCE Price Index by 4.4%. Forex traders can compare this to the first quarter GDP Price Index, which surged 8.3% quarterly, the PCE Price Index, which rose 7.1%, and the Core PCE, which increased 5.2% annualized.
US Natural Gas Inventories for the week ending August 19th are predicted at 58B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending August 12th, reported at 18B cubic feet. Traders will also get the Kansas Fed Manufacturing Index and three treasury auctions while awaiting Fed comments tomorrow out of Jackson Hole.
The forecast for the USD/JPY remains bearish after this currency pair recorded a lower high with signs of a sell-off rising. Confirming the absence of short-term bullishness are the flat Kijun-sen and Tenkan-sen. The Ichimoku Kinko Hyo Cloud completed bullish crossover, which appears to be a false crossover, as a bearish reversal is in the process. Traders should monitor the CCI after it has confirmed the lower high in price action with one of its own, followed by a breakdown below 100, from where more downside is likely. Can bears strengthen their positions and pressure the USD/JPY 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 USDJPY remain inside the or breakdown below the 135.800 to 137.700 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 136.650
- Take Profit Zone: 130.350 – 131.650
- Stop Loss Level: 138.150
Should price action for the USDJPY breakout above 137.700, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 138.150
- Take Profit Zone: 139.800 – 139.750
- Stop Loss Level: 137.700
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