Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary Japanese Current Account Balance for March came in at ¥2.278T and the Preliminary Japanese Adjusted Current Account Balance at ¥1.010T. Economists predicted a reading of ¥2.947T and ¥1.320T. Forex traders can compare this to the Japanese Current Account Balance for February, reported at ¥2.197T, and the Japanese Adjusted Current Account Balance at ¥1.230T.
Japanese Bank Lending for April increased by 3.2% annualized. Economists predicted a rise of 2.9%. Forex traders can compare this to Japanese Bank Lending for March, which rose 3.0% annualized.
Foreign Buying of Japanese Bonds for the period ending May 6th came in at -¥635.2B, and Foreigners Buying of Japanese Stocks at ¥373.1B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending April 29th, reported at ¥211.1B, and to Foreigners Buying of Japanese Stocks at ¥388.0B.
The Japanese Eco Watchers Survey Current Index for April came in at 54.6, and the Japanese Eco Watchers Survey Outlook Index at 55.7. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for March, reported at 53.3, and the Japanese Eco Watchers Survey Outlook Index at 54.1.
US Initial Jobless Claims for the week of May 6th are predicted at 245K, and US Continuing Claims for the week of April 29th at 1,820K. Forex traders can compare this to US Initial Jobless Claims for the week of April 29th, reported at 242K, and US Continuing Claims for the week of April 22nd at 1,805K.
The US PPI for April is predicted to increase by 0.3% monthly and by 2.4% annualized. Forex traders can compare this to the US PPI for March, which dropped by 0.5% monthly and rose by 2.7% annualized. The US Core PPI for April is predicted to expand by 0.2% monthly and 3.3% annualized. Forex traders can compare this to the US Core PPI for March, which decreased by 0.1% monthly and increased by 3.4% annualized.
US Natural Gas Inventories for the week ending May 5th are predicted at 74B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending April 28th, reported at 54B cubic feet.
The forecast for the USD/JPY remains bearish after this currency pair formed a double top formation before correcting. Price action is now trapped above its ascending Kijun-sen and below its Tenkan-sen, suggesting a volatility rise ahead. The Ichimoku Kinko Hyo Cloud performed a bullish crossover, but the flat Senkou Span B hints at a potential reversal. Traders should also monitor the CCI following its double breakdown from extreme overbought territory and below zero. This technical indicator has plenty of downside potential and could help bears regain control over price action. Can bears 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 134.200 to 134.800 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 134.500
- Take Profit Zone: 129.650 – 130.650
- Stop Loss Level: 135.600
Should price action for the USDJPY breakout above 134.800, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 135.600
- Take Profit Zone: 136.550 – 137.450
- Stop Loss Level: 134.800
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