Forex market which has been on continuation of Risk Appetite as stock market was geared toward recovery, saw a week of consolidation and ranged trading due to holiday shortened week. Stocks was fueled by optimism after Wells Fargo offered a Q1 earnings forecast that was double the consensus estimates and a revenue number $1B higher than expected. This week all eyes will turn to the earning reports of Golman Sachs on Tuesday, JP Morgan on Thursday and Citigroup on Thursday.
The economic calendar is jam packed with US data including PPI, CPI , retail sales, business inventories, TIC capital flow, NAHB housing market index and new residential construction, Philly Fed survey and U of Michigan consumer sentiment. Other data include Eurozone HICP final, industrial orders, trade balance, Japan Domestic CGPI, industrial production and Tertiary industry index consumer confidence.
Euro was broadly lower against the majors as anticipation of further rate cuts and the start of quantitative easing by ECB last week.
The Yen ended the week at a modest gain against USD and Euro despite of risk appetite sentiment and gains in the Equity Market.
Early in Asian session today, USDJPY was listless moving sideways within 5 pips.
Nikkei was expected to be lower today.
USDJPY S&R level
1. 100.35-opening price asian session
2. Spud fibo; 38.2%-100.40, 23.6%-100.33, Previous day low-100.21
3. 100.34- Weekly pivot point
4. 100.20- daily pivot point.
At 2:59, the both CCI is at extreme and possibility of a CCI 29 hook. At 3:00 price gap up with a bearish black candle and one bar later a doji was formed. Possibility of an evening star follow by doji star if price in the next candle has a long black candle body.
Enter short at 3:01 closing price. Confirmed prices downward pressure when it breached the 100.35/34, the blue lag cross 85, CCI 29 negative cross, MACD with red dots moving pass the lower band and zero level. Target at 100.20 (daily pivot).
