Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese Trade Balance for June came in at ¥43.0B and the Japanese Adjusted Trade Balance at -¥0.55T. Economists predicted a reading of -¥46.7B and -¥0.90T. Forex traders can compare this to the Japanese Trade Balance for May, reported at -¥1,381.9B, and the Japanese Adjusted Trade Balance at -¥0.78T. Exports for June rose by 1.5% annualized, and Imports plunged by 12.9% annualized. Economists predicted a rise of 2.2% and a contraction of 11.3%. Forex traders can compare this to Exports for May, which increased by 0.6% annualized, and Imports, which dropped by 9.8% annualized.
US Initial Jobless Claims for the week of July 15th are predicted at 242K, and US Continuing Claims for the week of July 8th at 1,729K. Forex traders can compare this to US Initial Jobless Claims for the week of July 8th, reported at 237K, and US Continuing Claims for the week of July 1st, reported at 1,729K.
The Philadelphia Fed Manufacturing Index for July is predicted at -10.0. Forex traders can compare this to the Philadelphia Fed Manufacturing Index for June, reported at -13.7. The Philadelphia Fed Business Conditions Index for July is predicted at 10.0, the Philadelphia Fed Employment Index at -4.5, the Philadelphia Fed New Orders Index at -10.0, the Philadelphia Fed Prices Paid Index at 10.70, and the Philadelphia Fed CAPEX Index at 6.20. Forex traders can compare this to the Philadelphia Fed Business Conditions Index for June, reported at 12.7, the Philadelphia Fed Employment Index at -0.4, the Philadelphia Fed New Orders Index at -11.0, the Philadelphia Fed Prices Paid Index at 10.50, and the Philadelphia Fed CAPEX Index at 9.90.
US Existing Home Sales for June are predicted at 4.20M. Forex traders can compare this to US Existing Home Sales for May, reported at 4.30M.
The US Leading Index for June is predicted to drop 0.6% monthly. Forex traders can compare this to the US Leading Index for May, which contracted 0.7% monthly.
US Natural Gas Inventories for the week ending July 14th are predicted at 48B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending July 7th, reported at 49B cubic feet.
The forecast for the USD/JPY remains bearish after this currency pair moved into its ascending Ichimoku Kinko Hyo Cloud, with rising downside pressure. The bearish crossover of the descending Tenkan-sen below the flat Kijun-sen has added to selling pressure. Traders should also monitor the CCI following its breakout from extreme oversold territory. Upside momentum is fading, and this technical indicator could reverse with plenty of downside potential. Can bears regain control over the USD/JPY and force price action into its 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 138.950 to 139.600 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 139.350
- Take Profit Zone: 134.400 – 136.100
- Stop Loss Level: 140.350
Should price action for the USDJPY breakout above 139.600, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 140.350
- Take Profit Zone: 141.150 – 142.000
- Stop Loss Level: 139.600
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