Economic Events: (GMT)

Close of the Asian Markets

13:30     USD                      Core Durable Goods Orders (MoM)                        0.9%                      0.3%       

13:30     USD                      Durable Goods Orders (MoM)                                   2.0%                      3.7%

Durable Goods Orders measures the change in the total value of new orders for long lasting manufactured goods, excluding transportation items. Because aircraft orders are very volatile, the core number gives a better gauge of ordering trends. A higher reading indicates increased manufacturing activity.

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                      Initial Jobless Claims                                                     370K                      352K                     

 13:30    USD                      Continuing Jobless Claims                                                                           3432K

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.

15:00     USD                      New Home Sales                                                             320K                      315K

New Home Sales measures the annualized number of new single-family homes that were sold during the previous month. This report tends to have more impact when it's released ahead of Existing Home Sales because the reports are tightly correlated.

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.

 23:30    JPY                        Tokyo Core CPI (YoY)                                                     -0.3%                     -0.3%

The Tokyo Core Consumer Price Index (CPI) measures the change in the price of goods and services purchased by consumers in Tokyo, excluding fresh food.

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

 23:50    JPY                        Monetary Policy Meeting Minutes

The Monetary Policy Meeting Minutes are a detailed record of the Bank of Japan's policy setting meeting, containing in-depth insights into the economic conditions that influenced the decision on where to set interest rates.

 23:50    JPY                       Retail Sales (YoY)                                                            2.0%                      -2.2%

Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

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

               

USD/JPY

USD/JPY Fundamental Analysis Jan. 26, 2012, Forecast

Analysis and Recommendation:

USD/JPY was trading 77.88.

The dollar rose as high as 77.98 yen during the session, compared with ¥77.74 late Tuesday and ¥77.02

Reports released earlier in the day showed Japan recorded an annual trade deficit in 2011, its first since 1980. The point at which Japan's savings turn around in terms of momentum has long been seen as the time to sell the Japanese yen.

The BoJ also reported negative effects in the Japanese economy and stated that it would be a longer turn around cutting growth rates. The yen will continue to fall against the USD.

Markets in Hong Kong, Taipei and Shanghai, among others, remained closed for the Lunar New Year holidays.

Upcoming Govt Bond Sales Dates

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
76.3917
76.7198
77.3337
77.6618
78.2757
78.6038
79.2177

Fibonacci
76.7198
77.0797
77.3020
77.6618
78.0217
78.2440
78.6038

Camarilla
77.6885
77.7748
77.8611
77.6618
78.0339
78.1202
78.2065

Woodie's
-
76.7913
77.4765
77.7332
78.4185
78.6753
-

DeMark's
-
-
78.4398
-
77.4977
-
-