Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary Japanese Current Account Balance for December came in at ¥0.744T and the Preliminary Japanese Adjusted Current Account Balance at ¥1.810T. Economists predicted a reading of ¥1.018T and ¥1.930T. Forex traders can compare this to the Japanese Current Account Balance for November, reported at ¥1.926T, and the Japanese Adjusted Current Account Balance at ¥1.89T.
Japanese Bank Lending for January increased by 3.1% annualized. Economists predicted a rise of 3.2%. Forex traders can compare this to Japanese Bank Lending for December, which rose 3.0% annualized.
Foreign Buying of Japanese Bonds for the period ending February 6th came in at ¥456.6B, and Foreigners Buying of Japanese Stocks at ¥308.4B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending January 30th, reported at ¥385.5B, and to Foreigners Buying of Japanese Stocks at ¥721.0B.
The Japanese Eco Watchers Survey Current Index for January came in at 50.2, and the Japanese Eco Watchers Survey Outlook Index at 52.5. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for December, reported at 51.8, and the Japanese Eco Watchers Survey Outlook Index at 50.4.
US Initial Jobless Claims for the week of February 3rd are predicted at 220K, and US Continuing Claims for the week of January 27th at 1,878K. Forex traders can compare this to US Initial Jobless Claims for the week of January 27th, reported at 224K, and US Continuing Claims for the week of January 20th, reported at 1,898K.
US Preliminary Wholesale Inventories for January are predicted to rise by 0.4% monthly. Forex traders can compare this to US Wholesale Inventories for December, which decreased by 0.4% monthly.
US Natural Gas Inventories for the week ending February 2nd are predicted at -73B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending January 26th, reported at -197B cubic feet.
The forecast for the USD/JPY is cautiously bullish following a bullish crossover in the Ichimoku Kinko Hyo Cloud, with the ascending Senkou Span A moving above the descending Senkou Span B. The Tenkan-sen has flatlined, but the Kijun-sen is moving higher, which could increase short-term volatility. Traders should also monitor the CCI in extreme overbought territory. Can bulls maintain control over the USD/JPY and push price action into its horizontal resistance area for a new 2024 high? 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 breakout above the 148.250 to 149.300 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 148.700
- Take Profit Zone: 151.150 – 151.900
- Stop Loss Level: 147.400
Should price action for the USD/JPY breakdown below 148.250, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 147.400
- Take Profit Zone: 145.000 – 146.000
- Stop Loss Level: 148.250
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