Source: PaxForex Premium Analytics Portal, Fundamental Insight
Foreign Buying of Japanese Bonds for the period ending December 23rd came in at -¥167.4B, and Foreigners Buying of Japanese Stocks at -¥120.0B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending December 16th, reported at ¥2,286.3B, and Foreigners Buying of Japanese Stocks at ¥273.1B.
Preliminary Japanese Industrial Production for November decreased by 0.9% monthly and 1.4% annualized. Economists predicted a drop of 1.6% and 2.1%. Forex traders can compare this to Japanese Industrial Production for October, which increased by 1.3% monthly and 1.1% annualized. The Japanese Industrial Production Forecast for December surged by 6.0%, and the Industrial Production Forecast for January plunged by 7.2% monthly.
Japanese Retail Sales for November expanded by 1.0% monthly and 5.3% annualized. Forex traders can compare this to Japanese Retail Sales for October, which dropped by 1.6% monthly and accelerated by 4.1% annualized. Large Retailer’s Sales for November rose by 5.0% annualized. Forex traders can compare this to Large Retailer’s Sales for October, which increased by 4.0% annualized.
US Initial Jobless Claims for the week of December 23rd are predicted at 210K, and US Continuing Claims for the week of December 16th at 1,875K. Forex traders can compare this to US Initial Jobless Claims for the week of December 16th, reported at 205K, and US Continuing Claims for the week of December 9th at 1,865K.
The US Trade Balance for November is predicted at -$88.40B. Forex traders can compare this to the US Trade Balance for October, reported at -$89.56B.
US Preliminary Wholesale Inventories for November are predicted to drop by 0.2% monthly. Forex traders can compare this to US Wholesale Inventories for October, which contracted by 0.4% monthly.
US Pending Home Sales for November are predicted to increase 1.0% monthly. Forex traders can compare this to US Pending Home Sales for October, which dropped 1.5% monthly.
US Natural Gas Inventories for the week ending December 22nd are predicted at -79B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending December 15th, reported at -87B cubic feet.
US Crude Oil Inventories Change for the week ending December 22nd are predicted at -2.704M. Traders can compare this to US Crude Oil Inventories Change for the week ending December 15th, reported at 2.909M. US Gasoline Inventories Change for the week ending December 22nd are predicted at 0.400M, and US Distillate Stocks Change at 0.600M. Traders can compare this to US Gasoline Inventories Change for the week ending December 15th, reported at 2.710M, and US Distillate Stocks Change at 1.485M.
The forecast for the USD/JPY turned cautiously bullish after this currency pair corrected into its horizontal support area. The Ichimoku Kinko Hyo Cloud shows signs of flattening, while the Tenkan-sen and the Kijun-sen drift lower, suggesting more volatility ahead. Traders should monitor the CCI in extreme oversold territory, where a positive divergence formed. A sustained breakout above -100 could trigger a relief rally. Can bulls overpower bears and regain control over the USD/JPY to push price action into its horizontal resistance 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 breakout above the 140.750 to 141.800 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 141.150
- Take Profit Zone: 145.150 – 145.950
- Stop Loss Level: 140.000
Should price action for the USDJPY breakdown below 140.750, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 140.000
- Take Profit Zone: 138.400 – 139.100
- Stop Loss Level: 140.750
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