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

• US CPI and Core CPI: The US CPI for December is predicted to increase by 0.1% monthly and by 2.1% annualized. Forex traders can compare this to the US CPI for November which increased by 0.4% monthly and by 2.2% annualized. The US Core CPI for December is predicted to increase by 0.2% monthly and by 1.7% annualized. Forex traders can compare this to the US Core CPI for November which increased by 0.1% monthly by 1.7% annualized.
• US Advanced Retail Sales: US Advanced Retail Sales for December are predicted to increase by 0.5% monthly and Retail Sales Less Autos are predicted to increase by 0.4% monthly. Forex traders can compare this to US Advanced Retail Sales for November which increased by 0.8% monthly and to Retail Sales Less Autos which increased by 1.0% monthly. Retail Sales Less Autos and Gas for December are predicted to increase by 0.4% monthly and Retail Sales Control Group are predicted to increase by 0.4% monthly. Forex traders can compare this to Retail Sales Less Autos and Gas for November which increased by 0.8% monthly and to Retail Sales Control Group which increased by 0.8% monthly.
• US Business Inventories: US Business Inventories for November are predicted to increase by 0.3% monthly. Forex traders can compare this to US Business Inventories for October which decreased by 0.1% monthly.

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

• Japanese Current Account Balance and Trade Balance: The Japanese Current Account Balance for November was reported at ¥1,347.3B. Economists predicted a figure of ¥1,836.1B. Forex traders can compare this to the Japanese Current Account Balance for October which was reported at ¥2,176.7B. The Japanese Adjusted Current Account Balance for November was reported at ¥1,700.5B. Economists predicted a figure of ¥2,168.9B. Forex traders can compare this to the Japanese Adjusted Current Account Balance for October which was reported at ¥2,441.5B. The Japanese Trade Balance for November was reported at ¥181.0B. Economists predicted a figure of ¥314.1B. Forex traders can compare this to the Japanese Trade Balance for October which was reported at ¥430.2B.
• Japanese Buying Foreign Bonds and Japanese Buying Foreign Stocks/Foreign Buying Japanese Bonds and Foreigners Buying Japanese Stocks: Japanese Buying Foreign Bonds for January 5th was reported at ¥173.0B and Japanese Buying Foreign Stocks was reported at ¥217.1B. Forex traders can compare this to Japanese Buying Foreign Bonds for December 29th which was reported at ¥434.2B and to Japanese Buying Foreign Stocks which was reported at ¥177.7B. Foreign Buying Japanese Bonds for January 5th was reported at -¥128.3B and Foreigners Buying Japanese Stocks was reported at ¥597.7B. Forex traders can compare this to Foreign Buying Japanese Bonds for December 29th which was reported at -¥2,023.7B and to Foreigners Buying Japanese Stocks which was reported at ¥76.2B.
• Japanese Bank Lending: Japanese Bank Lending including Trusts for December increased by 2.5% annualized and Japanese Bank Lending excluding Trusts increased by 2.4% annualized. Forex traders can compare this to Japanese Bank Lending including Trusts for November which increased by 2.7% annualized and to Japanese Bank Lending excluding Trusts which increased by 2.7% annualized.
• Japanese Eco Watchers Survey: The Japanese Eco Watchers Survey Current Index for December was reported at 53.9 and the Japanese Eco Watchers Survey Outlook Index was reported at 52.7. Economists predicted a figure of 55.1 and of 53.5. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for November which was reported at 55.1 and to the Japanese Eco Watchers Survey Outlook Index which was reported at 53.8.

Should price action for the USDJPY remain inside the or breakdown below the 110.650 to 111.550 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 111.100
• Take Profit Zone: 107.300 – 108.000
• Stop Loss Level: 112.000

Should price action for the USDJPY breakout above 111.550 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 112.050
• Take Profit Zone: 113.350 – 113.750
• Stop Loss Level: 111.550

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