FX Trading Signals for Jan 29
1. Monday, January 29th, 2007 (6:50 pm New York Time) JAPAN
We have Japanese Industrial Production coming out for the month of December. This is a relatively important report for Japan. They actually release it twice per month. The first one is preliminary report, which is the one we are getting tomorrow. The second one is final report, which is basically a revision of the preliminary report, which is coming out on February 13th. Preliminary reports are usually a lot more important. First of all, because they give the first taste and the first clues on how the Industrial sector in Japan did during the last month, and not only that, but there are also much bigger chance of a huge surprise in the reading of preliminary report. Japan industrial production has been reading very strong throughout the first two months of 4th quarter. After coming out reading at 1.6% in the month of October, and then 0.8% in the month of November, it's expected that same output will maintain, and there will be an even further growth of 0.4%. In my opinion, if industrial production reads at 0.8% or higher, it would match or better than previous month's reading, and would signify the biggest growth in industrial sector for 2006, so it would be good for the yen, and I may possibly go short on USD/JPY or EUR/JPY. If the reading is 0% or negative, it would mean that industrial growth stayed the same in the month of December or even shrank, and it would be negative for the yen, so I may possibly go long on USD/JPY. If my triggers are hit, I am expecting a move of 30 pips or more in the USD/JPY OR EUR/JPY pair, but it may take up to 30 minutes for the move to fully manifest itself. Of course the price levels before the report, and the readings of jobless rate and household spendings that are coming out 20 minutes before this report may also play a role on how this report needs to be traded.
We have Japanese Industrial Production coming out for the month of December. This is a relatively important report for Japan. They actually release it twice per month. The first one is preliminary report, which is the one we are getting tomorrow. The second one is final report, which is basically a revision of the preliminary report, which is coming out on February 13th. Preliminary reports are usually a lot more important. First of all, because they give the first taste and the first clues on how the Industrial sector in Japan did during the last month, and not only that, but there are also much bigger chance of a huge surprise in the reading of preliminary report. Japan industrial production has been reading very strong throughout the first two months of 4th quarter. After coming out reading at 1.6% in the month of October, and then 0.8% in the month of November, it's expected that same output will maintain, and there will be an even further growth of 0.4%. In my opinion, if industrial production reads at 0.8% or higher, it would match or better than previous month's reading, and would signify the biggest growth in industrial sector for 2006, so it would be good for the yen, and I may possibly go short on USD/JPY or EUR/JPY. If the reading is 0% or negative, it would mean that industrial growth stayed the same in the month of December or even shrank, and it would be negative for the yen, so I may possibly go long on USD/JPY. If my triggers are hit, I am expecting a move of 30 pips or more in the USD/JPY OR EUR/JPY pair, but it may take up to 30 minutes for the move to fully manifest itself. Of course the price levels before the report, and the readings of jobless rate and household spendings that are coming out 20 minutes before this report may also play a role on how this report needs to be traded.
posted by Naveen Pantera at 9:35 PM
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