Here are the key factors to keep in mind today for Euro trades:
- German Trade Balance: Germany posted a bigger than expected trade surplus in December, but the Euro has not moved on it yet which means forex traders have time to position their entries accordingly. Economists expected a trade surplus of €16.0 billion for December, but the reported figure came in at €21.8 billion which can be compared to a trade surplus of €17.9 billion reported in November.
- Exports rose 3.4% in December and imports plunged 0.8%. Economists expected an increase of only 1.0% in exports and an increase of 0.2% in imports. November’s imports were revised to the upside and now show a contraction of 2.2% while imports rose 1.2%.
- The current account surplus also came in much better than economists expected and rose to €25.3 billion in December. Expectations called for a current account surplus of €20.8 billion which can be compared to November’s surplus of €18.9 billion.
Here is the key factor to keep in mind today for Japanese Yen trades:
- Japanese Trade Balance: Japan posted a trade deficit of ¥395.6 billion for December. Economists expected a trade deficit of ¥472.0 billion which can be compared to the trade deficit of ¥636.8 billion which was reported in November.
- The current account surplus came in weaker than expected at ¥187.2 billion in December against expectations for a surplus of ¥355.8 billion. November’s surplus remained unchanged at ¥433.0 billion. The overall mixed report did not allow the Japanese Yen to move significantly in either direction.
Should price action for the EURJPY remain inside the, or breakout above the 133.500 to 134.000 zone the following trade set-up is recommended:
- Timeframe: H4
- Recommendation: Long Position
- Entry Level: Long Position @ 133.800
- Take Profit Zone: 139.800 – 140.800
- Stop Loss Level: 131.300
Should price action for the EURJPY breakdown below 133.500 the following trade set-up is recommended:
- Timeframe: H4
- Recommendation: Short Position
- Entry Level: Short Position @ 133.000
- Take Profit Zone: 129.800 – 130.800
- Stop Loss Level: 134.000
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