Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Preliminary Japanese Current Account Balance for April came in at ¥1.895T and the Preliminary Japanese Adjusted Current Account Balance at ¥1.900T. Forex traders can compare this to the Japanese Current Account Balance for March, reported at ¥2.278T, and to the Japanese Adjusted Current Account Balance at ¥1.010T.

Japanese Bank Lending for May increased by 3.4% annualized. Economists predicted a rise of 3.1%. Forex traders can compare this to Japanese Bank Lending for April, which rose 3.2% annualized.

Foreign Buying of Japanese Bonds for the period ending June 3rd came in at ¥524.7B, and Foreigners Buying of Japanese Stocks at ¥610.9B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending May 27th, reported at ¥1,057.9B, and to Foreigners Buying of Japanese Stocks at ¥379.3B.

The Final Japanese GDP for the first quarter rose 0.7% quarterly and 2.7% annualized. Economists predicted a rise of 0.4% and 1.6%. Forex traders can compare this to the Japanese GDP for the fourth quarter, which increased 0.1% quarterly and 0.4% annualized. Final Private Consumption for the first quarter rose by 0.5% quarterly, and Final Capital Expenditure by 1.4% quarterly. Economists predicted a rise of 0.6% and 0.9%. Forex traders can compare this to Private Consumption for the fourth quarter, which increased by 0.2% quarterly, and Capital Expenditure, which dropped by 0.7% quarterly. Final External Demand for the first quarter decreased by 0.3% quarterly. Economists predicted a contraction of 0.3%. Forex traders can compare this to External Demand for the fourth quarter, which expanded by 0.4% quarterly. The final GDP Price Index for the first quarter rose 2.0% annualized. Economists predicted a rise of 2.1%. Forex traders can compare it to the GDP Price Index for the fourth quarter, which increased by 1.2% annualized.

The Japanese Eco Watchers Survey Current Index for May came in at 55.0, and the Japanese Eco Watchers Survey Outlook Index at 54.4. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for April, reported at 54.6, and the Japanese Eco Watchers Survey Outlook Index at 55.7.

US Initial Jobless Claims for the week of June 3rd are predicted at 235K, and US Continuing Claims for the week of May 27th at 1,800K. Forex traders can compare this to US Initial Jobless Claims for the week of May 27th, reported at 232K, and US Continuing Claims for the week of May 20th at 1,795K.

US Wholesale Inventories for April are predicted to increase by 0.4% monthly, and Wholesale Trade Sales to decrease by 0.2% monthly. Forex traders can compare this to US Wholesale Inventories for March, which dropped by 2.1% monthly, and US Wholesale Trade Sales, which came in flat at 0.0% monthly.

US Natural Gas Inventories for the week ending June 2nd are predicted at 104B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending May 26th, reported at 110B cubic feet.

The forecast for the USD/JPY turned cautiously bearish in the near term as the threat of a multi-billion intervention by the Bank of Japan increased. The Kijun-sen and Tenkan-sen flatlined, and the ascending Ichimoku Kinko Hyo Cloud is moving between them with signs of losing bullish momentum. Traders should also monitor the CCI after a negative divergence formed in extreme overbought territory followed by a breakdown. A move below zero could reignite selling pressure in this currency pair. Can bears maintain control over price action and force the USD/JPY 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 139.600 to 140.100 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 139.850
• Take Profit Zone: 136.100 – 137.300
• Stop Loss Level: 140.950

Should price action for the USDJPY breakout above 140.100, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 140.950
• Take Profit Zone: 142.250 – 142.950
• Stop Loss Level: 140.100