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

• US Initial Jobless Claims and Continuing Claims: US Initial Jobless Claims for the week of May 18th are predicted at 215K and US Continuing Claims for the week of May 11th are predicted at 1,669K. Forex traders can compare this to US Initial Jobless Claims for the week of May 11th which were reported at 212K and to US Continuing Claims for the week of May 4th which were reported at 1,660K.
• US Markit Manufacturing PMI, Services PMI and Composite PMI: The Preliminary US Markit Manufacturing PMI for May is predicted at 52.7. Forex traders can compare this to the US Markit Manufacturing PMI for April which was reported at 52.6. The Preliminary US Markit Services PMI for May is predicted at 53.5. Forex traders can compare this to the US Markit Services PMI for April which was reported at 53.0. The Preliminary US Markit Composite PMI for May is predicted at 53.3. Forex traders can compare this to the US Markit Composite PMI for April which was reported at 53.0.
• US New Home Sales: US New Home Sales for April are predicted to decrease by 2.5% monthly to 675K new homes. Forex traders can compare this to US New Home Sales for March which increased by 4.5% monthly to 692K new homes.
• US Kansas City Fed Manufacturing Activity Index: The US Kansas City Fed Manufacturing Activity Index for May is predicted at 7. Forex traders can compare this to the US Kansas City Fed Manufacturing Activity Index for April which was reported at 5.

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 May 17th was reported at ¥1,355.7B and Japanese Buying Foreign Stocks was reported at ¥241.7B. Forex traders can compare this to Japanese Buying Foreign Bonds for the period ending May 10th which was reported at ¥33.7B and to Japanese Buying Foreign Stocks which was reported at ¥123.9B. Foreign Buying Japanese Bonds for the period ending May 17th was reported at -¥194.9B and Foreigners Buying Japanese Stocks was reported at -¥58.0B. Forex traders can compare this to Foreign Buying Japanese Bonds for the period ending May 10th which was reported at ¥553.5B and to Foreigners Buying Japanese Stocks which was reported at ¥280.7B.
• Japanese Nikkei Manufacturing PMI: The Preliminary Japanese Nikkei Manufacturing PMI for May was reported at 49.6. Forex traders can compare this to the Japanese Nikkei Manufacturing PMI April which was reported at 50.2.

Should price action for the USDJPY remain inside the or breakdown below the 110.100 to 110.600 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 110.300
• Take Profit Zone: 108.500 – 109.000
• Stop Loss Level: 111.000

Should price action for the USDJPY breakout above 110.600 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 110.850
• Take Profit Zone: 111.800 – 112.400
• Stop Loss Level: 110.300

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