Close of the Asian Session

Economic Events: (GMT)

Jan. 19

13:30                    USD       Core CPI (MoM)                               0.10%                    0.20%

The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

13:30                    USD       CPI (MoM)                                          0.20%                    0.00%

13:30                    USD       Initial Jobless Claims                     385.00K                                399.00K

                13:30                    USD       Continuing Jobless Claims           3590.00K                              3628.00K                             

Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

Continuing Jobless Claims measures the number of unemployed individuals who qualify for benefits under unemployment insurance.

A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.  If the report comes in under the 385K we can expect to see the USD fall against the Yen, but if the report is at the 399K level or above expect to see the USD rally and trend upwards on solid economic news.

Analysis and Recommendation:

Levels of Support and Resistance can be found today at:

S:            76.456   76.5555  76.674                  Pivot:    76.7735 R:            76.892   76.9915   77.11

USD/JPY was trading at 76.76

TheUSD/JPY closed almost at the open today, moving very little. The duo seem to have been sleeping all week. What little life they have shown has been in reaction of EU.

In the news a comment from a Goldman exec said that the JPY is probably 25% overvalued and Japan's days of trade and current account surpluses look to be finished. Even the Japanese Minister joined the crowd, stating it is difficult at this moment to find an FX level for the JPY similarly to the Swiss Franc. The markets and currencies are all skewed by the EU crisis.

The two will most likely trade in this range for the rest of the week. Watch the US jobs reports, this could be the kickstart the USD needs to rally, but at this writing all looks calm.

USD/JPY Pivot Points (Time Frame: 1 Day)
 

Name S1 S2 S3 Pivot R1 R2 R3

Classic
76.6590
76.5520
76.4410
76.7700
76.8770
76.9880
77.0950

Fibonacci
76.6867
76.6353
76.5520
76.7700
76.8533
76.9047
76.9880

Camarilla
76.7460
76.7260
76.7061
76.7700
76.7860
76.8060
76.8260

Woodie's
76.6570
76.5510
-
76.7690
76.8750
76.9870
-

DeMark's
76.9325
-
-
-
76.7145
-
-