Economic Events: (GMT)

Close of the Asian Markets

00:30     AUD      CPI (QoQ)                                            0.2%                      0.6%

The Consumer Price Index (CPI) measures the change in the price of goods and services 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 AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.

 00:30    AUD      Trimmed Mean CPI (QoQ)           0.6%                      0.3%

The Trimmed Mean Consumer Price Index (CPI) measures the change in the price of goods and services purchased by consumers, excluding the most volatile 30% of items. This data helps illustrate underlying inflation trends.

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

05:00    JPY        BoJ Monthly Report

The Bank of Japan's (BoJ) monthly report contains the statistical data that policymakers evaluate when setting interest rates. The report also provides detailed analysis of current and future economic conditions from the bank's perspective.

20:00     NZD       Interest Rate Decision                  2.50%                   2.50%

 20:00    NZD       RBNZ Rate Statement

The Reserve Bank of New Zealand (RBNZ) governor decides where to set the rate after consulting senior bank staff and external advisers. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.

The Reserve Bank of New Zealand's rate statement is the primary tool the panel uses to communicate with investors about monetary policy. It contains the outcome of the vote on interest rates, discusses the economic outlook and offers clues on the outcome of future votes.

A higher than expected rate is positive/bullish for the NZD, while a lower than expected rate is negative/bearish for the NZD.

23:00     KRW      South Korean GDP (QoQ)              0.4%                     0.8%

Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy's health.

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

USD/JPY

USD/JPY Fundamental Analysis Jan. 25, 2012, Forecast

Analysis and Recommendation:

USD/JPY was trading 77.02 virtually unchanged. The pair is expected to remain trading in tandem for the next day of so.  The dollar might pick up some energy after reports in the US, but today will be all about Greece. Investors are wary and stressed over the deal or no deal. It is vitally important to the EU and Greece to announce a firm agreement today.

This morning the Bank of Japan issued the following statement; ( I have edited and highllighted the important information )

The Bank of Japan will encourage the uncollateralized overnight call rate to remain at around

0 to 0.1 percent.

Japan's economic activity has been more or less flat, mainly due to the effects of a slowdown

in overseas economies and the appreciation of the yen. As for domestic demand, business

fixed investment has been on a moderate increasing trend and private consumption has

remained firm. On the other hand, exports and production have remained more or less flat,

due to the slowdown in overseas economies and the yen's appreciation as well as the

remaining effects of the flooding in Thailand.

The markets remain under heavy strain, financial conditions in Japan have continued to ease.

The year-on-year rate of change in the CPI (all items less fresh food) is around 0 percent.

As for the outlook, Japan's economic activity will remain more or less flat for the time being.

After that, the economy is expected to return to a moderate recovery path as the pace of

recovery in overseas economies picks up, led by emerging and commodity-exporting

economies, and reconstruction-related demand after the earthquake disaster gradually

materializes.

The year-on-year rate of change in the CPI is expected to remain at around 0

Upcoming Govt Bond Sales Dates

Jan 25  10:10  Sweden  Nominal bond auction

Jan 25  10:30  Germany  Eur 3.0bn 3.25% Jul 2042 Bund

Jan 25  16:30  Italy   Details BTP/CCTeu on Jan 30

Jan 25  18:00  US  Auctions 5Y Notes

Jan 26  10:10  Italy   Auctions CTZ/BTPei

Jan 26  18:00  US  Auctions 7Y Notes

Jan 27  10:10  Italy   BOT auction

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

Name S3 S2 S1 Pivot R1 R2 R3

Classic
76.1330
76.5060
77.1080
77.4810
78.0830
78.4560
79.0580

Fibonacci
76.5060
76.8785
77.1085
77.4810
77.8534
78.0836
78.4560

Camarilla
77.4419
77.5312
77.6206
77.4810
77.7994
77.8888
77.9781

Woodie's
-
76.5632
77.2225
77.5383
78.1975
78.5132
-

DeMark's
-
-
78.2695
-
77.2945
-
-