Today's Outlook for USDJPY & USDCHF | ForexGen

Posted by forexgennews | 29 Aug, 2008, 10:15


USDJPY Outlook

Yesterday the USDJPY attempted to move lower, bottomed at 108.70 before whipsawed to the upside, topped at 109.89 and closed at 109.53. My model goes mixed with neutral bias. Immediate support is seen at 109.20. Initial resistance at 109.92. CCI in neutral area in all 3 time frames (hourly, 4h, daily).


USDCHF Outlook


The USDCHF downside correction seemed limited yesterday. The pair bottomed at 1.0915 but closed higher at 1.0972. I am expecting a ranging market between 1.1023 and 1.0914 today. We need a breakout to find a clearer direction. CCI in neutral area on daily chart.

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Trade Desk Thoughts - Japanese Core CPI | ForexGen

Posted by forexgennews | 29 Aug, 2008, 10:14

Japanese Core CPI Actual 2.4%, Expected 2.3%, Previous 1.9%


Release Explanation: CPI measures the average price of a fixed market basket of goods and services purchased by consumers, and therefore give an overall read of inflationary pressures. It is the most widely used inflation indicator of Central Banks, institutions, and Governments. It is used to calculate cost of living numbers for Government programs. Each regional Central Bank will have their own CPI target rate, and each will differ in line with the way they individually want to control the aspects of their own economies.


Trade Desk Thoughts: The Japanese core consumer price index rose to 2.4 percent on the year. This is the first time in more than a decade that Japans inflation rate exceeded 2 percent. Companies have been passing on higher commodity prices to consumers and this has been a deterrent to their spending, weakening the overall economy, which is on the brink of a recession.


Forex Technical Reaction: The yen is currently entangled in its 20 day SMA as it has been for the past seven trading days. The pair has also failed to break above R1 or below S1 for the past four days

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