Here are the key factors to keep in mind today for US Dollar trades:

• US Empire Manufacturing Index: The US Empire Manufacturing Index for February is predicted at 7.6. Forex traders can compare this to the US Empire Manufacturing Index for January which was reported at 3.9.
• US Import and Export Price Index: The US Import Price Index for January is predicted to decrease by 0.1% monthly and by 1.5% annualized. Forex traders can compare this to the US Import Price Index for December which decreased by 1.0% monthly and by 0.6% annualized. The US Import Price Index excluding Petroleum for January is predicted to decrease by 0.1% monthly. Forex traders can compare this to the US Import Price Index excluding Petroleum for December which increased by 0.3% monthly. The US Export Price Index for January is predicted to decrease by 0.1% monthly and by 0.7% annualized. Forex traders can compare this to the US Export Price Index for December which decreased by 0.6% monthly and which increased by 1.1% annualized.
• US Industrial Production and Manufacturing Production: US Industrial Production for January is predicted to increase by 0.1% monthly and Manufacturing Production is predicted flat at 0.0% monthly. Forex traders can compare this to US Industrial Production for December which increased by 0.3% monthly and to Manufacturing Production which increased by 1.1% monthly. Capacity Utilization for January is predicted at 78.7%. Forex traders can compare this to Capacity Utilization for December which was reported at 78.7%.
• US Michigan Consumer Sentiment: Preliminary US Michigan Consumer Sentiment for February is predicted at 93.3. Forex traders can compare this to US Michigan Consumer Confidence for January which was reported at 91.2. Preliminary Current Conditions for February are expected at 112.1 and Preliminary Expectations are predicted at 84.5. Forex traders can compare this to Current Conditions for January which were reported at 108.8 and to Expectations which were reported at 79.9.

Here are the key factors to keep in mind today for Japanese Yen trades:

• Japanese Buying Foreign Bonds and Japanese Buying Foreign Stocks/Foreign Buying Japanese Bonds and Foreigners Buying Japanese Stocks: Japanese Buying Foreign Bonds for the period ending February 8th was reported at ¥992.4B and Japanese Buying Foreign Stocks was reported at -¥114.3B. Forex traders can compare this to Japanese Buying Foreign Bonds for the period ending February 1st which was reported at ¥915.6B and to Japanese Buying Foreign Stocks which was reported at -¥395.1B. Foreign Buying Japanese Bonds for the period ending February 8th was reported at ¥906.1B and Foreigners Buying Japanese Stocks was reported at -¥102.0B. Forex traders can compare this to Foreign Buying Japanese Bonds for the period ending February 1st which was reported at ¥638.3B and to Foreigners Buying Japanese Stocks which was reported at -¥124.0B.
• Japanese Industrial Production and Capacity Utilization: Final Japanese Industrial Production for December decreased by 0.1% monthly and by 1.9% annualized. Forex traders can compare this to previous Japanese Industrial Production for December which decreased by 0.1% monthly and by 1.9% annualized. Capacity Utilization for December decreased by 1.9% monthly. Forex traders can compare this to Capacity Utilization for November which increased by 1.0% monthly.

Should price action for the USDJPY remain inside the or breakdown below the 110.100 to 110.650 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 110.300
• Take Profit Zone: 107.500 – 108.000
• Stop Loss Level: 111.100

Should price action for the USDJPY breakout above 110.650 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 110.950
• Take Profit Zone: 112.400 – 113.200
• Stop Loss Level: 110.300

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