Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Machine Orders for September dropped 4.6% monthly and rose 2.9% annualized. Economists predicted a rise of 0.7% and 4.7%. Forex traders can compare this to Japanese Machine Orders for August, which plunged 5.8% monthly and surged 9.7% annualized.
The Japanese Tertiary Industry Index for September decreased by 0.4% monthly. Economists predicted an increase of 0.6% monthly. Forex traders can compare this to the Japanese Tertiary Industry Index for August, which rose 0.7% monthly.
The US Import Price Index for October is predicted to drop by 0.4% monthly, and the US Export Price Index by 0.4% monthly. Forex traders can compare this to the US Import Price Index for September, which contracted by 1.2% monthly, and to the US Export Price Index by 0.8% monthly.
US Retail Sales for October are predicted to increase by 1.0% monthly and Core Retail Sales by 0.4% monthly. Forex traders can compare this to US Retail Sales for September, which came in flat at 0.0% monthly, and Core Retail Sales, which rose 0.1% monthly. Retail Sales Less Autos and Gas for October are predicted to rise 0.2% monthly, and Retail Sales in the Control Group are predicted to rise 0.3% monthly. Forex traders can compare this to Retail Sales Less Autos and Gas for September, which increased 0.3% monthly, and to Retail Sales in the Control Group, which rose 0.4% monthly.
US Industrial Production for October is predicted to increase by 0.2% monthly, and Manufacturing Production by 0.2% monthly. Forex traders can compare this to US Industrial Production for September, which rose 0.4% monthly, and Manufacturing Production, which increased 0.4% monthly. Capacity Utilization for October is predicted at 80.4%. Forex traders can compare this to Capacity Utilization for September, reported at 80.3%.
US Business Inventories for September are predicted to increase by 0.5% monthly, and Business Inventories excluding Autos to decrease by 0.1%. Forex traders can compare this to US Business Inventories for August, which rose 0.8% monthly, and Business Inventories excluding Autos by 0.6%.
The US NAHB Housing Market Index for November is predicted at 36. Forex traders can compare this to the US NAHB Housing Market Index for October, reported at 38.
US Crude Oil Inventories for the week ending November 11th are predicted at -0.440M. Traders can compare this to US Crude Oil Inventories for the week ending November 4th, reported at 3.925M. US Gasoline Inventories for the week ending November 11th are predicted at 0.310M, and US Distillate Stocks at -0.513M. Traders can compare this to US Gasoline Inventories for the week ending November 4th, reported at -0.899M, and US Distillate Stocks at -0.521M.
The forecast for the USD/JPY remains bearish as traders unwind the month-long collapse of the Japanese Yen. Confirming healthy downside pressure are the descending Kijun-sen and the Tenkan-sen. The narrowing Ichimoku Kinko Hyo Cloud approaches a bearish crossover after turning sideways, suggesting a pending directional shift. Traders should monitor the CCI after it has started to drift higher in extreme oversold territory. A false breakout could follow, but more downside and new multi-week lows are likely to keep the correction intact. Can bears build on their 1,200+ pips sell-off and add another 800+pips? 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 138.150 to 140.350 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 139.650
- Take Profit Zone: 130.400 – 132.850
- Stop Loss Level: 141.500
Should price action for the USDJPY breakout above 140.350, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 141.500
- Take Profit Zone: 143.100 – 144.500
- Stop Loss Level: 140.350
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