Source: PaxForex Premium Analytics Portal, Fundamental Insight

Foreign Buying of Japanese Bonds for the period ending February 6th was reported at ¥1,027.5B and Foreigners Buying of Japanese Stocks was reported at ¥462.5B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending January 30th, reported at ¥7,27.7B and to Foreigners Buying of Japanese Stocks, reported at -¥187.6B.

Preliminary US Michigan Consumer Sentiment for February is predicted at 80.8. Forex traders can compare this to US Michigan Consumer Confidence for January, reported at 79.0. Preliminary Current Conditions for February are expected at 88.0, and Preliminary Expectations are predicted at 75.7. Forex traders can compare this to Current Conditions for January, reported at 86.7, and to Expectations, reported at 74.0.

The forecast for the USD/JPY remains bearish following its brief pause after retreating from its 2021 high. This currency pair remains above its descending Ichimoku Kinko Hyo Cloud, but economic data continues to point towards ongoing weakness. The Kijun-sen continues to advance, but the Tenkan-sen turned sideways, suggesting more downside potential. The CCI retreated from extreme overbought territory and has plenty of room to extend its slide. Can bears capitalize on recent developments and force the USD/JPY into its next 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 104.550 to 105.050 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 104.850
• Take Profit Zone: 102.550 – 103.000
• Stop Loss Level: 105.350

Should price action for the USDJPY breakout above 105.050 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 105.350
• Take Profit Zone: 105.750 – 106.100
• Stop Loss Level: 105.050

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