Japanese Machine Orders for January decreased by 4.5% monthly and increased by 1.5% annualized. Economists predicted a decrease of 5.5% and 0.2%. Forex traders can compare this to Japanese Machine Orders for December, which increased by 5.3% monthly and 11.8% annualized. The Japanese Tertiary Industry Index for January decreased by 1.7% monthly. Forex traders can compare this to the Japanese Tertiary Industry Index for December, which decreased by 0.3% monthly.
The forecast for the NZD/JPY remains bearish as risk appetite among traders is high despite a rise in Covid-19 infections across Europe. They provide a reminder that reopening economies is a premature mistake and poses an ongoing threat to the healthcare system. Volatility is likely to increase as the Kijun-sen and Tenkan-sen continue to drift higher but are losing momentum. The Ichimoku Kinko Hyo Cloud shows signs of flattening out, and the CCI failed to confirm the advance. A breakdown out of extreme overbought territory can start a correction in this currency pair.
Should price action for the NZD/JPY remain inside the or breakdown below the 78.100 to 78.900 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 78.550
- Take Profit Zone: 75.000 – 75.550
- Stop Loss Level: 79.550
Should price action for the NZD/JPY breakout above 78.900 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 79.550
- Take Profit Zone: 81.000 – 81.550
- Stop Loss Level: 78.900
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EUR/JPY | Euro to Japanese Yen Trading Analysis
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EUR/JPY | Euro to Japanese Yen Trading Analysis
