Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese Monetary Base for September decreased by 0.1% annualized. Economists predicted an increase of 0.8%. Forex traders can compare this to the Japanese Monetary Base for August, which rose 0.6% annualized.
Japanese Household Confidence for September came in at 36.9. Economists predicted a reading of 37.1. Forex traders can compare this to Japanese Household Confidence for August, reported at 36.7.
The US ADP Employment Change for September is predicted at 124K. Forex traders can compare this to the US ADP Employment Change for August, reported at 99K.
US Crude Oil Inventories Change for the week ending September 27th are predicted to decrease by 1.500M. Traders can compare this to the US Crude Oil Inventories Change for the week ending September 20th, which dropped by 4.471M. US Gasoline Inventories Change for the week ending September 27th are predicted to contract by 0.500M, and US Distillate Stocks Change to drop by 1.900M. Traders can compare this to US Gasoline Inventories Change for the week ending September 20th, which contracted by 1.538M, and US Distillate Stocks Change, which dropped by 2.227M.
The forecast for the USD/JPY is cautiously bearish, with this currency pair trading at its horizontal resistance area. After completing a bullish crossover, the Tenkan-sen and the Kijun-sen have flatlined, suggesting the absence of upside momentum. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are flat but continue to shift lower. Traders should also monitor the CCI following its breakdown from extreme overbought territory. This technical indicator has plenty of downside potential, and a move below zero could trigger the next leg lower. Can bears maintain control over the USD/JPY and force price action 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 142.950 to 143.550 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 143.750
- Take Profit Zone: 138.650 – 139.600
- Stop Loss Level: 144.500
Should price action for the USDJPY break out above 143.550, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 144.500
- Take Profit Zone: 146.400 – 147.200
- Stop Loss Level: 143.550
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