Trade data out of Japan reminded forex traders that the global economy is in worse shape than what economists have expected or what markets have priced in. Japanese All Industry Activity Index increased sharply, but supermarket sales plunged. The USDJPY started to move lower and is now trading below a strong horizontal resistance area. Where will price action move from here? Today’s fundamental analysis will take a look at price action in both directions.

After yesterday’s FOMC minutes, which echoed Fed Chief Powell’s comments in regards to future monetary policy, forex traders will get initial jobless claims as well as existing home sales. The Philadelphia Fed Business Outlook will also be released, but what impact will today’s economic reports have on the USDJPY as traders a growing concerned about the trade negotiations between the US and China? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.