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

• US Industrial Production and Manufacturing Production: US Industrial Production for December is predicted to increase by 0.2% monthly and Manufacturing Production is predicted to increase by 0.3% monthly. Forex traders can compare this to US Industrial Production for November which increased by 0.6% monthly and to Manufacturing Production which was reported flat at 0.0% monthly.Capacity Utilization for December is predicted at 78.5%. Forex traders can compare this to Capacity Utilization for November which was reported at 78.5%.
• US Michigan Consumer Sentiment: Preliminary US Michigan Consumer Sentiment for January is predicted at 97.0. Forex traders can compare this to US Michigan Consumer Confidence for December which was reported at 98.3. Preliminary Current Conditions for January are expected at 114.5 and Preliminary Expectations are predicted at 86.0. Forex traders can compare this to Current Conditions for December which were reported at 116.1 and to Expectations which were reported at 87.0.

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

• Japanese National CPI: The Japanese National CPI for December increased by 0.3% annualized. Economists predicted an increase of 0.3% annualized. Forex traders can compare this to the Japanese National CPI for November which increased by 0.8% annualized. The Japanese National Core CPI for December increased by 0.3% annualized. Economists predicted an increase of 0.3% annualized. Forex traders can compare this to the Japanese National Core CPI for November which increased by 0.3% annualized. The Japanese National CPI Excluding Fresh Food for December increased by 0.7% annualized. Economists predicted an increase of 0.8% annualized. Forex traders can compare this to the Japanese National CPI Excluding Fresh Food for November which increased by 0.9% annualized.
• 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 January 11th was reported at ¥12,209.2B and Japanese Buying Foreign Stocks was reported at ¥172.5B. Forex traders can compare this to Japanese Buying Foreign Bonds for the period ending January 4th which was reported at -¥1,003.3B and to Japanese Buying Foreign Stocks which was reported at ¥24.6B. Foreign Buying Japanese Bonds for the period ending January 11th was reported at ¥711.7B and Foreigners Buying Japanese Stocks was reported at -¥428.2B. Forex traders can compare this to Foreign Buying Japanese Bonds for the period ending January 4th which was reported at ¥72.4B and to Foreigners Buying Japanese Stocks which was reported at -¥248.5B.
• Japanese Industrial Production and Capacity Utilization: Final Japanese Industrial Production for November decreased by 1.0% monthly and increased by 1.5% annualized. Forex traders can compare this to previous Japanese Industrial Production for November which decreased by 1.1% monthly and which increased by 1.4% annualized. Capacity Utilization for November increased by 1.0% monthly. Forex traders can compare this to Capacity Utilization for October which increased by 4.0% monthly.

Should price action for the USDJPY remain inside the or breakdown below the 109.050 to 109.650 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 109.350
• Take Profit Zone: 107.000 – 107.500
• Stop Loss Level: 110.250

Should price action for the USDJPY breakout above 109.650 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 109.500
• Take Profit Zone: 110.750 – 111.350
• Stop Loss Level: 109.050

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