Source: PaxForex Premium Analytics Portal, Fundamental Insight
Final Japanese Industrial Production for July decreased 1.5% monthly and increased 11.6% annualized. Forex traders can compare this to Japanese Industrial Production for June, which increased 6.5% monthly and 23.0% annualized. Capacity Utilization for July decreased 3.4% monthly. Forex traders can compare this to Capacity Utilization for June, which increased 6.2% monthly.
The US CPI for August is predicted to increase 0.4% monthly and 5.3% annualized. Forex traders can compare this to the US CPI for July, which increased 0.5% monthly and 5.4% annualized. The US Core CPI for August is predicted to increase 0.3% monthly and 4.2% annualized. Forex traders can compare this to the US Core CPI for July, which increased 0.3% monthly and 4.3% annualized.
The forecast for the USD/JPY is bearish, and price action entered a sideways trend together with the Ichimoku Kinko Hyo Cloud. Traders should expect a few more choppy trading sessions with the Kijun-sen and the Tenkan-sen also drifting sideways. The CCI retreated from extreme overbought territory but stabilized within its bullish range. It is now likely to challenge the 100 level once again, and traders should wait for rejection until placing new sell orders. Can bears regain the upper hand and pressure the USD/JPY 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 USD/JPY remain inside the or breakdown below the 109.950 to 110.250 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 110.100
- Take Profit Zone: 108.700 – 109.000
- Stop Loss Level: 110.500
Should price action for the USD/JPY breakout above 110.250, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 110.500
- Take Profit Zone: 111.150 – 111.650
- Stop Loss Level: 110.250
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