Source: PaxForex Premium Analytics Portal, Fundamental Insight
Foreign Buying of Japanese Bonds for the period ending December 17th came in at -¥941.8B, and Foreigners Buying of Japanese Stocks at -¥667.1B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending December 10th, reported at -¥596.4B, and Foreigners Buying of Japanese Stocks at ¥1,109.3B.
The Final Japanese Leading Index for October came in at 98.6, and the Final Japanese Coincident Index at 99.6. Forex traders can compare this to the Japanese Leading Index for September, reported at 98.2, and to the Japanese Coincident Index at 100.8.
The final US GDP for the third quarter is predicted to increase by 2.9% quarterly. Forex traders can compare this to the second quarter GDP, which decreased by 0.6% quarterly. The final GDP Price Index for the third quarter is predicted to rise 4.3% quarterly. Forex traders can compare this to the second quarter GDP Price Index, which surged 9.0% quarterly. The Final Core PCE for the third quarter is predicted to increase by 4.6% quarterly. Forex traders can compare this to the second quarter Core PCE, which rose 4.6% quarterly.
US Initial Jobless Claims for the week of December 17th are predicted at 222K, and US Continuing Claims for the week of December 10th are predicted at 1,683K. Forex traders can compare this to US Initial Jobless Claims for the week of December 10th, reported at 211K, and to US Continuing Claims for the week of December 3rd, reported at 1,671K.
The US Leading Index for November is predicted to drop 0.4% monthly. Forex traders can compare this to the US Leading Index for October, which plunged 0.8% monthly.
US Natural Gas Inventories for the week ending December 16th are predicted at -93B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending December 9th, reported at -50B cubic feet.
The forecast for the USD/JPY remains bearish after this currency pair reverses its preceding rally. Short-term volatility may spike as the Kijun-sen and Tenkan-sen flatlined, but the Ichimoku Kinko Hyo Cloud continues to apply downside pressure. Traders should monitor the CCI in extreme oversold territory after it recorded a lower low. A false breakout with a lower high could precede another sell-off in this currency pair, which has plenty of downside potential from current levels. Can bears overpower bulls and force the USD/JPY into its horizontal support area, extending its 2,000+ pips reversal? 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 130.550 to 132.500 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 131.800
- Take Profit Zone: 123.300 – 125.100
- Stop Loss Level: 134.400
Should price action for the USDJPY breakout above 132.500, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 134.400
- Take Profit Zone: 137.450 – 138.800
- Stop Loss Level: 132.500
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
