Source: PaxForex Premium Analytics Portal, Fundamental Insight

Japanese Retail Sales for September decreased by 0.1% monthly and by 8.7% annualized. Economists predicted an increase of 0.3% monthly and a decrease of 7.7% annualized. Forex traders can compare this to Japanese Retail Trade for August, which increased by 4.6% monthly, and which decreased by 1.9% annualized. The Bank of Japan decided to keep interest rates at -0.10%. Forex traders can compare this to the previous Bank of Japan interest rate decision where interest rates were left unchanged at -0.10%. Japanese Consumer Confidence for October was reported at 33.6. Forex traders can compare this to Japanese Consumer Confidence for September, reported at 32.7.

US Initial Jobless Claims for the week of October 24th are predicted at 775K, and US Continuing Claims for the week of October 17th are predicted at 7,700K. Forex traders can compare this to US Initial Jobless Claims for the week of October 17th, which were reported at 787K, and to US Continuing Claims for the week of October 10th, which were reported at 8,373K.

The Advanced US GDP for the third quarter is predicted to increase by 31.0% annualized. Forex traders can compare this to the second-quarter GDP, which decreased by 31.4% annualized. The GDP Price Index for the third quarter is predicted to increase by 2.8% annualized. Forex traders can compare this to the second quarter GDP Price Index, which decreased by 2.1% annualized. The Core PCE for the third quarter is predicted to increase by 4.0% annualized. Forex traders can compare this to the second quarter Core PCE, which decreased by 0.8% annualized.

The forecast for the USD/JPY remains bearish with global Covid-19 cases on the rise. Europe and the US are especially hard-hit by the second wave, prompting French President Macron and German Chancellor Merkel to announce new nationwide lockdown measures. Other countries are likely to implement similar measures to contain the pandemic, harming global trade. The CCI drifts higher in extreme oversold territory but possesses more room to the downside. The Tenkan-sen, Kijun-sen, and Ichimoku Kinko Hyo Cloud are trending sideways, but will bears be able to force more selling? 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 104.100 to 104.550 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 105.350
• Take Profit Zone: 101.150 – 102.000
• Stop Loss Level: 105.100

Should price action for the USDJPY breakout above 104.550 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 105.100
• Take Profit Zone: 105.750 – 106.100
• Stop Loss Level: 104.550

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