Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Japanese Jobless Rate for May came in at 2.6%, and the Job-to-Applicant Ratio at 1.24. Economists predicted a figure of 2.5% and 1.24. Forex traders can compare this to the Japanese Jobless Rate for April, reported at 2.5%, and to the Job-to-Applicant Ratio at 1.23.

The Tankan Large Manufacturers Index for the second quarter came in at 9, and the Tankan Large Manufacturers Outlook at 10. Economists predicted a figure of 13 and 14. Forex traders can compare this to the Tankan Large Manufacturers Index for the first quarter, reported at 14, and the Tankan Large Manufacturers Outlook at 9. The Tankan Large Non-Manufacturers Index for the second quarter came in at 13, and the Tankan Large Non-Manufacturers Outlook at 13. Economists predicted a figure of 14 and 17. Forex traders can compare this to the Tankan Large Non-Manufacturers Index for the first quarter, reported at 9, and the Tankan Large Non-Manufacturers Outlook at 7. The Tankan Small Manufacturers Index for the second quarter came in at -4, and the Tankan Small Manufacturers Outlook at -5. Economists predicted a figure of -6 and -5. Forex traders can compare this to the Tankan Small Manufacturers Index for the first quarter, reported at -4, and the Tankan Small Manufacturers Outlook at -5. The Tankan Small Non-Manufacturers Index for the second quarter came in at -1, and the Tankan Small Non-Manufacturers Outlook at -5. Economists predicted a figure of -2 and -1. Forex traders can compare this to the Tankan Small Non-Manufacturers Index for the first quarter, reported at -6, and the Tankan Small Non-Manufacturers Outlook at -10. The Japanese Tankan Large All Industry Capex Index for the second quarter increased 18.6% quarterly, and the Japanese Tankan Small All Industry Capex Index decreased by 1.4% quarterly. Economists predicted a rise of 8.9% and a drop of 6.7%. Forex traders can compare this to the Japanese Tankan Large All Industry Capex Index for the first quarter, which expanded 2.2% quarterly, and the Japanese Tankan Small All Industry Capex Index, which contracted 11.4% quarterly.

US Construction Spending for May is predicted to increase by 0.4% monthly. Forex traders can compare this to US Construction Spending for April, which rose 0.2% monthly.

The US ISM Manufacturing Index for June is predicted at 54.9, and ISM Prices Paid at 81.0. Forex traders can compare this to the US ISM Manufacturing Index for May, reported at 56.1, and ISM Prices Paid at 82.2.

The forecast for the USD/JPY remains bearish as the Japanese Yen collapsed, and the Bank of Japan is the last dovish central bank, likely to cave in and stabilize its currency. Confirming the lack of bullish momentum are the flat Kijun-sen and the Tenkan-sen. Volatility is expected to remain high due to the ascending Ichimoku Kinko Hyo Cloud until it shows signs of flattening out. Traders should monitor the CCI following its breakdown from extreme overbought territory. A move below zero could trigger more selling in this currency pair. Can bears strengthen their control over price action and force USD/JPY into its horizontal support area?

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Should price action for the USDJPY remain inside the or breakdown below the 134.100 to 135.600 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 134.900
• Take Profit Zone: 127.500 – 128.950
• Stop Loss Level: 137.000

Should price action for the USDJPY breakout above 135.600, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 137.000
• Take Profit Zone: 138.400 – 139.750
• Stop Loss Level: 135.600

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