Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Japanese All Industry Activity Index for April decreased by 6.4% monthly. Forex traders can compare this to the Japanese All Industry Activity Index for Mach, which decreased by 3.4% monthly.

US Preliminary Durable Goods Orders for May are predicted to increase by 10.9% monthly, and Durables Excluding Transportation are predicted to increase by 2.5% monthly. Forex traders can compare this to US Durable Goods Orders for April, which decreased by 17.2% monthly, and to Durables Excluding Transportation, which decreased by 7.4% monthly. US Initial Jobless Claims for the week of June 20th are predicted at 1,300K and US Continuing Claims for the week of June 13th are predicted at 19,968K. Forex traders can compare this to US Initial Jobless Claims for the week of June 13th, which were reported at 1,508K, and to US Continuing Claims for the week of June 6th, which were reported at 20,544K.

The Final US GDP for the first quarter is predicted to decrease by 5.0% annualized. Forex traders can compare this to the previous first-quarter GDP, which increased by 2.1% annualized. The final GDP Price Index for the first quarter is predicted to increase by 1.4% annualized. Forex traders can compare this to the previous first-quarter GDP Price Index, which increased by 1.4% annualized. The Final Core PCE for the first quarter is predicted to increase by 1.6% annualized. Forex traders can compare this to the previous first-quarter Core PCE, which increased by 1.3% annualized.

The USD/JPY forecast turned bearish, driven by the rise in global Covid-19 infections threatening the economic reopening process. Japan and the US are faced with new virus cases, with the US especially hard hit. It prompted states to reinforce 14-day quarantine requirements for visitors. Today’s US economic data has the potential to follow a string of disappointments. Price action remains trapped between its Tenkan-sen and its Kijun-sen, attempting to climb the Ichimoku Kinko Hyo cloud. Will bears launch a new attack today? 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 breakdown below the 106.850 to 107.450 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 107.200
• Take Profit Zone: 103.100 – 104.500
• Stop Loss Level: 108.000

Should price action for the USD/JPY breakout above 107.450 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 108.000
• Take Profit Zone: 109.200 – 109.850
• Stop Loss Level: 107.450

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