The Japanese Trade Balance for February was reported at ¥1,109.8B. Economists predicted a figure of ¥916.7B. Forex traders can compare this to the Japanese Trade Balance for January, which was reported at -¥1,312.6B. Exports for February decreased by 1.0% annualized and Imports decreased by 14.0% annualized. Economists predicted a decrease of 4.1% and 14.1%. Forex traders can compare this to Exports for January, which decreased by 2.6% annualized, and to Imports which decreased by 3.6% annualized.
US Housing Starts for February are predicted to decrease by 4.3% monthly to 1,500K starts, and Building Permits are predicted to decrease by 3.2% monthly to 1,500K permits. Forex traders can compare this to US Housing Starts for January, which decreased by 3.6% monthly to 1,567K starts and to Building Permits, which increased by 9.2% monthly to 1,551K permits. Following the recovery in the USD/JPY, the forecast has turned bearish. Economic data suggests markets have not fully priced the economic disruptions from the coronavirus. Will today’s data start another sell-off? 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 106.900 to 107.850 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 107.500
- Take Profit Zone: 101.150 – 102.300
- Stop Loss Level: 108.000
Should price action for the USD/JPY breakout above 107.500 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 108.450
- Take Profit Zone: 109.350 – 109.650
- Stop Loss Level: 108.000
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