Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Household Spending for September increased 5.0% monthly and decreased 1.9% annualized. Economists predicted an increase of 2.8% and a decrease of 3.9%. Forex traders can compare this to Japanese Household Spending for October, which decreased 3.9% monthly and 3.0% annualized.
Foreign Buying of Japanese Bonds for the period ending October 30th was reported at -¥525.9B, and Foreigners Buying of Japanese Stocks was reported at ¥411.5B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending October 23rd, reported at -¥604.5B, and Foreigners Buying of Japanese Stocks, reported at ¥230.5B.
The US NFP Report for October is predicted to show 450K job additions and an unemployment rate of 4.7%. Forex traders can compare this to the US NFP Report for September, which showed 194K job additions and an unemployment rate of 4.8%. Private Payrolls for October are predicted to show 400K job additions and Manufacturing Payrolls 27K job additions. Forex traders can compare this to Private Payrolls for September, which showed 194K job additions, and Manufacturing Payrolls, which showed 26K job additions. The Average Work Week for October is predicted at 34.8 hours. Forex traders can compare this to the Average Work Week for September, reported at 34.8 hours. Average Hourly Earnings for October are predicted to increase 0.4% monthly and 4.9% annualized. Forex traders can compare this to Average Hourly Earnings for September, which increased 0.6% monthly and 4.6% annualized.
US Consumer Credit for September is predicted at $15.90B. Forex traders can compare this to US Consumer Credit for August, reported at $14.38B.
The forecast for the USD/JPY turned cautiously bearish within a potential bullish continuation pattern, but today’s US NFP report may break it and initiate a bearish move. With the Kijun-sen and the Tenkan-sen flat, bullish momentum fades, despite the uptrend in the Ichimoku Kinko Hyo Cloud, which shows signs of stagnation. After the CCI decelerated out of extreme overbought territory, traders should expect more downside before considering a trend reversal. Can bears force the USD/JPY into a correction until price action reaches 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 113.250 to 114.250 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 113.650
- Take Profit Zone: 110.800 – 111.200
- Stop Loss Level: 114.700
Should price action for the USDJPY breakout above 114.250, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 114.700
- Take Profit Zone: 115.750 – 116.350
- Stop Loss Level: 114.250
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