Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary Japanese Current Account Balance for July came in at ¥3.193T and the Preliminary Japanese Adjusted Current Account Balance at ¥2.800T. Economists predicted a reading of ¥2.589T and ¥1.930T. Forex traders can compare this to the Japanese Current Account Balance for June, reported at ¥1.534T, and the Japanese Adjusted Current Account Balance at ¥1.780T.
Japanese Bank Lending for August increased by 3.0% annualized. Economists predicted a rise of 3.2%. Forex traders can compare this to Japanese Bank Lending for July, which rose 3.2% annualized.
The Japanese GDP for the second quarter rose by 0.7% quarterly and 2.9% annualized. Economists predicted an increase of 0.8% and 3.1% annualized. Forex traders can compare this to the Japanese GDP for the first quarter, which dropped by 0.6% quarterly and 2.4% annualized. Private Consumption for the second quarter expanded by 0.9% quarterly, preliminary Capital Expenditure by 0.8% quarterly, and preliminary External Demand decreased by 0.1% quarterly. Economists predicted a rise of 1.0%, an increase of 0.9%, and a decrease of 0.1%. Forex traders can compare this to Private Consumption for the first quarter, which decreased by 0.6% quarterly, Capital Expenditure, which dropped by 0.5% quarterly, and External Demand, which contracted by 0.5% quarterly.
The Japanese Eco Watchers Survey Current Index for August came in at 49.0. Economists predicted a figure of 47.6. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for July, reported at 47.5.
US Final Wholesale Inventories for July are predicted to increase by 0.3% monthly. Forex traders can compare this to US Wholesale Inventories for June, which rose 0.2% monthly.
US Consumer Credit for July is predicted at $12.30B. Forex traders can compare this to US Consumer Credit for June, reported at $8.93B.
The forecast for the USD/JPY remains cautiously bearish as the next leg of the carry trade could unwind with a US Fed interest rate cut. The Tenkan-sen and the Kijun-sen are moving lower, with this currency pair trading below both. The Senkou Span A of the Ichimoku Kinko Hyo Cloud extends its contraction following a bearish crossover with the Senkou Span B flat and the next candidate to likely contract. Traders should also monitor the CCI in extreme oversold territory. This technical indicator may complete a false bullish crossover before resuming its downtrend. Can bears maintain control over the USD/JPY and force price action into its horizontal support area and a fresh 2024 low? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the USD/JPY remain inside the or breakdown below the 141.950 to 143.700 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 142.850
- Take Profit Zone: 138.650 – 139.600
- Stop Loss Level: 144.500
Should price action for the USD/JPY break out above 143.700, 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: 143.700
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