Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Preliminary Japanese Leading Index for March was reported at 103.2, and the Preliminary Japanese Coincident Index was reported at 93.1. Forex traders can compare this to the Japanese Leading Index for February, reported at 98.9, and to the Japanese Coincident Index, reported at 89.9.

The US CPI for April is predicted to increase by 0.2% monthly and by 3.6% annualized. Forex traders can compare this to the US CPI for March, which increased by 0.6% monthly and by 2.6% annualized. The US Core CPI for April is predicted to increase by 0.3% monthly and by 2.3% annualized. Forex traders can compare this to the US Core CPI for March, which increased by 0.3% monthly and by 1.6% annualized. The US Monthly Budget Statement for April is predicted at -$220.0B. Forex traders can compare this to the US Monthly Budget Statement for March, reported at -$660.0B.

The forecast for the USD/JPY remains s bearish, with downside pressure on the US Dollar on the rise. Inflationary pressures are increasing, and CPI data shifts in focus while central banks vow to keep interest rates low and allow inflation to rise. Price action moved into its flattening Ichimoku Kinko Hyo Cloud, which has taken a bearish bias. The Kijun-sen already started to move lower, with the Tenkan-sen flat. After the CCI moved out of extreme overbought territory, traders should expect more downside. Can bears 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 108.350 to 109.000 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 108.800
• Take Profit Zone: 105.550 – 106.200
• Stop Loss Level: 109.400

Should price action for the USDJPY breakout above 109.000, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 109.400
• Take Profit Zone: 110.300 – 110.950
• Stop Loss Level: 109.000

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