Japan – Tertiary Industry Activity
On Wednesday, at GMT 4:30 a.m., the Japanese Ministry of Economy, Trade, and Industry will release the month-over-month tertiary industry activity data. It measures the changes in the total value of services bought by tertiary businesses in Japan.
The Japanese businesses increase their purchases of various services in order to expand their business when they feel optimistic. Hence, binary options traders consider the tertiary industry activity to be a leading indicator of the overall Japanese economy.
Last month, the Japanese tertiary industry activity went up by 2.2%. This month, the forecast was set at an increase of 0.2%. However, the actual figure came out at a decline of -0.6%.
Australia – Unemployment Rate
On Thursday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate. It measures the percentage of the total workforce which remained unemployed over the past month.
Forex traders consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy. It is because one of the main goals of the Reserve Bank of Australia is to keep unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help Forex traders predict future interest rates and inflation situations in the country.
Last month, the unemployment rate in Australia came out at 4.6%. This month, analysts are expecting it to go up to 5.0%.
The AUD/JPY formed a bearish pin bar on May 10, 2021. Since then, it remained a strong downtrend. Over the last few months, the AUD/JPY fell by around 785 pips or 9.15%. On August 10, it fell to 77.90 and formed a Doji, which started a bullish retracement. On September 7, it touched near the 200-Day moving average and resumed the downtrend. It broke below the intermediate uptrend line on September 8. Earlier today, the AUD/JPY fell to the support near the 80.00 level.
The Japanese Tertiary Industry Activity declined by -0.6%. But, analysts are expecting the Australian unemployment rate to go up to 5.0%, which has a higher degree of impact on the Forex market. We believe it would set a bearish fundamental outlook for the AUD/JPY this week. Therefore, if the AUD/JPY closes below the support near 80.00, it would likely attract additional bearish momentum in the market.
Hence, binary options traders should look out for trading opportunities below this major support level of around 80.0.
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