Forex traders will get initial jobless claims data today, which has been ticking higher. The Leading Index for December is expected to show a contraction, while a regional manufacturing report is expected to the recession in the sector is ongoing. How will the USDJPY react following the release of economic data after completing a breakdown? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.

The Japanese trade balance posted a smaller-than-expected deficit as the slump in exports was offset by a drop in imports. Global growth fears increased once again, prompting a flight to safe-haven assets. Countering the disappointing trade data was a better-than-expected increase in the All Industry Activity Index. The USDJPY added to the breakdown below its horizontal resistance area, will the sell-off accelerate? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.