Analysis and Recommendation: (close of Asian session)

USD/JPY  climbed for most of the trading session opening at 83.73 and ending at 83.80, the Yen broke the 84.00 point of resistance reaching as high as 84.18. The USD has kept momentum for two days, on the back of positive economic news and upbeat statements from the FOMC and then supported by Fed Chairman Bernanke.

The USD is expected to hold close to its current range until after the release of the US jobless claims on Thursday afternoon.

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Released Economic Reports for March 14, 2012 actual v. forecast

Date

 

Currency

 

 

 

Event

Actual

 

Forecast

 

Previous

 

 

Mar. 14

 

KRW

 
 
 

South Korean Unemployment Rate 

3.7%

 

3.5% 

 

3.2% 

 
 

 

 

AUD

 
 
 

Westpac Consumer Sentiment 

-5.00%

 
 
 

4.20% 

 
 

 

 

JPY

 
 
 

BSI Large Manufacturing Conditions 

-7.3

 

1.3 

 

-6.1 

 
 

 

 

JPY

 
 
 

Industrial Production (MoM) 

1.9%

 

2.1% 

 

2.0% 

 
 

 

 

JPY

 
 
 

BoJ Monthly Report 

 

 
 
 
 
 
 

 

 

GBP

 
 
 

Average Earnings Index +Bonus 

1.4%

 

1.9% 

 

1.9% 

 
 

 

 

GBP

 
 
 

Claimant Count Change 

7.2K

 

6.0K 

 

7.0K 

 
 

 

 

EUR

 
 
 

CPI (YoY) 

2.7%

 

2.7% 

 

2.7% 

 
 

 

 

EUR

 
 
 

Industrial Production (MoM) 

0.2%

 

0.7% 

 

-1.1% 

 
 

 

 

EUR

 
 
 

Core CPI (YoY) 

1.5%

 

1.6% 

 

1.5% 

 
 

 

 

USD

 
 
 

Current Account 

-124.1B

 

-114.0B 

 

-108.0B 

 
 

 

 

USD

 
 
 

Import Price Index (MoM) 

0.4%

 

0.6% 

 

0.0% 

 
 

Economic Events for March 16, 2012

Time      Currency        Event                                                          Forecast           Previous

00:50     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.

13:30     USD      Core CPI (MoM)                                               0.2%                      0.2%                     

13:30     USD      CPI (MoM)                                                       0.4%                      0.2%     

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.

14:15     USD       Industrial Production (MoM)                           0.4%                      0.0%

Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.

14:55     USD       Michigan Consumer Sentiment Index             75.7                       75.3

The University of Michigan Consumer Sentiment Index rates the relative level of current and future economic conditions. There are two versions of this data released two weeks apart, preliminary and revised. The preliminary data tends to have a greater impact. The reading is compiled from a survey of around 500 consumers.

Government Bond Auction Schedule     (this week)

Mar 15  09:30  Spain  Obligacion auction

Mar 15  09:50  France  BTAN auction

Mar 15  10.30  UK  Auctions 4.5% 2042 conventional Gilt

Mar 15  10:50  France  OATi auction

Mar 15  16:00  US  Announces auction of 10Y TIPS on Mar 22

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

 

Name S3 S2 S1 Pivot R1 R2 R3

Classic
82.3047
82.8353
83.1217
83.6523
83.9387
84.4693
84.7557

Fibonacci
82.8353
83.1474
83.3402
83.6523
83.9644
84.1572
84.4693

Camarilla
83.1833
83.2582
83.3331
83.6523
83.4829
83.5578
83.6327

Woodie's
-
82.7742
82.9995
83.5913
83.8165
84.4082
-

DeMark's
-
-
83.7955
83.5807
82.9785
-
-