By Mike Ber

The following is a special report from ForexAlerts.ca . They recently launched their service and are offering a 50% discount for a limited time. To learn more about currencies and take advantage of this offer click here.

While all Japanese pairs that we cover remain bullish in the long term, we may expect consolidation in the short term. Everyone who is so desperate to be in JPY trade will be able to buy on a pullback.

This consolidation may be expected any time soon, perhaps even today, or within next two trading sessions, and may be quick or may take few days to unfold.

One of the concerns that we have is the lack of the follow-though. It can be debated what kind of strength the pair should display when it breaks important level, such as 100 was for USD/JPY. If you take a look at USD/JPY’s performance in April you will notice that the pair gained 3 days in a row on April 4th, 5th, and 6th – 3.84%, 1.14%, and 1.30%, it also gained 1.34% on April 19th once this figure was finally broken. The whole Wall-Street was obsessed with USD/JPY breaking the magic number of 100, and we gained only 1.96% on May 9th. We have been expecting a stronger upside move.

We cover USD/JPY and EUR/JPY in our daily reports. In this update we include CAD/JPY chart too. We believe that out of the three pairs CAD/JPY has the best trade setup.

USD/JPY – currently trading @ 101.76

Bias: Bullish

UJ(39)

Levels:

Up: 103.989

Range: 100.284103.989

Down: 100.284

Commentary:

USD/JPY is trading within the 100.284103.989 range.

USD/JPY broke out, and finally trading above 100. We are waiting for a good opportunity to enter long. We mentioned few levels where we prefer to buy on a pullback. At this point we want to enter long on a pullback to 100.284 level of support.

Economic events that can influence direction:

Mon May 13

13:00

EuroZone Finance Ministers Meet in Brussels

EUR

Mon May 13

14:00

USD Business Inventories

USD

Tue May 14

6:00

JPY Machine Tool Orders (YoY)

JPY

Tue May 14

6:00

Fed Plosser Speaks on Monetary Policy

USD

Tue May 14

15:00

NY Fed Quarterly Household Debt Report

USD

Tue May 14

23:50

JPY Tertiary Industry Index (MoM)

JPY

Wed May 15

5:00

JPY Consumer Confidence

JPY

Wed May 15

12:30

USD Producer Price Index (YoY)

USD

Wed May 15

12:30

USD Producer Price Index Ex Food & Energy

USD

Wed May 15

13:00

USD Net Long-term TIC Flows

USD

Wed May 15

13:15

USD Industrial Production

USD

Wed May 15

13:15

USD Manufacturing (SIC) Production

USD

Wed May 15

23:50

JPY Gross Domestic Product (QoQ)

JPY

Wed May 15

23:50

JPY Gross Domestic Product Annualized

JPY

Wed May 15

23:50

Nominal Gross Domestic Product (QoQ)

JPY

Thu May 16

4:30

JPY Industrial Production (YoY)

JPY

Thu May 16

7:45

USD Fed’s Plosser Speaks on Monetary Policy

USD

Thu May 16

11:45

USD Fed’s Rosengren Speaks in Milan

USD

Thu May 16

12:30

USD Initial Jobless Claims

USD

Thu May 16

12:30

USD Consumer Price Index Core Index s.a.

USD

Thu May 16

12:30

USD Consumer Price Index n.s.a.

USD

Thu May 16

12:30

USD Continuing Claims

USD

Thu May 16

12:30

USD Housing Starts

USD

Thu May 16

12:30

USD Building Permits (MoM)

USD

Thu May 16

12:30

USD Consumer Price Index (MoM)

USD

Thu May 16

12:30

USD Consumer Price Index Ex Food & Energy

USD

Thu May 16

12:30

USD Consumer Price Index (YoY)

USD

Thu May 16

12:30

Consumer Price Index Ex Food & Energy

USD

Thu May 16

12:30

USD Housing Starts (MoM)

USD

Thu May 16

14:00

USD Philadelphia Fed.

USD

Thu May 16

23:50

JPY Machine Orders (YoY)

JPY

Fri May 17

13:55

USD U. of Michigan Confidence

USD

Fri May 17

14:00

USD Leading Indicators

USD

 

CAD/JPY – currently trading @ 100.68

Bias: Bullish

CJ(1)

We are waiting for a pullback to initiate long position around 99.56 area

EUR/JPY – currently trading @ 132.09

Bias: Bullish

EJ(39)

Levels:

Up: No Level for Now

Range: No Range for Now

Down: 130.968, 126.955

Commentary:

We are changing our bias from Bullish-Neutral to Bullish.

EUR/JPY broke out and, we are waiting for a good opportunity to enter long. At this point 130.968 is the only level where we want to buy.

Economic events that can influence direction:

Mon May 13

13:00

EuroZone Finance Ministers Meet in Brussels

EUR

Mon May 13

14:00

USD Business Inventories

USD

Tue May 14

6:00

EUR German Consumer Price Index (MoM)

EUR

Tue May 14

6:00

EUR German Consumer Price Index (YoY)

EUR

Tue May 14

6:00

German Consumer Price Index-EU Harmon.

EUR

Tue May 14

6:00

JPY Machine Tool Orders (YoY)

JPY

Tue May 14

6:00

Fed Plosser Speaks on Monetary Policy

USD

Tue May 14

8:30

EUR Italian General Government Debt

EUR

Tue May 14

9:00

German ZEW Survey (Economic Sentiment)

EUR

Tue May 14

9:00

EUR Euro-Zone Industrial Production w.d.a.

EUR

Tue May 14

9:00

Euro-Zone ZEW Survey (Economic Sentiment)

EUR

Tue May 14

9:00

EUR German ZEW Survey (Current Situation)

EUR

Tue May 14

15:00

NY Fed Quarterly Household Debt Report

USD

Tue May 14

23:50

JPY Tertiary Industry Index (MoM)

JPY

Wed May 15

5:00

JPY Consumer Confidence

JPY

Wed May 15

5:30

EUR French Gross Domestic Product (YoY)

EUR

Wed May 15

6:00

German Gross Domestic Product s.a. (QoQ)

EUR

Wed May 15

6:00

German Gross Domestic Product w.d.a. (YoY)

EUR

Wed May 15

6:00

German Gross Domestic Product n.s.a. (YoY)

EUR

Wed May 15

8:00

Italian Gross Domestic Product s.a. and w.d.a.

EUR

Wed May 15

9:00

Euro-Zone Gross Domestic Product s.a. (QoQ)

EUR

Wed May 15

9:00

Euro-Zone Gross Domestic Product s.a. (YoY)

EUR

Wed May 15

12:30

USD Producer Price Index (YoY)

USD

Wed May 15

12:30

USD Producer Price Index Ex Food & Energy

USD

Wed May 15

13:00

USD Net Long-term TIC Flows

USD

Wed May 15

13:15

USD Industrial Production

USD

Wed May 15

13:15

USD Manufacturing (SIC) Production

USD

Wed May 15

23:50

JPY Gross Domestic Product (QoQ)

JPY

Wed May 15

23:50

JPY Gross Domestic Product Annualized

JPY

Wed May 15

23:50

Nominal Gross Domestic Product (QoQ)

JPY

Thu May 16

4:30

JPY Industrial Production (YoY)

JPY

Thu May 16

7:45

USD Fed’s Plosser Speaks on Monetary Policy

USD

Thu May 16

9:00

Euro-Zone Consumer Price Index (MoM)

EUR

Thu May 16

9:00

Euro-Zone Consumer Price Index (YoY)

EUR

Thu May 16

9:00

EUR Euro-Zone Consumer Price Index

EUR

Thu May 16

11:45

USD Fed’s Rosengren Speaks in Milan

USD

Thu May 16

12:30

USD Initial Jobless Claims

USD

Thu May 16

12:30

USD Consumer Price Index Core Index s.a.

USD

Thu May 16

12:30

USD Consumer Price Index n.s.a.

USD

Thu May 16

12:30

USD Continuing Claims

USD

Thu May 16

12:30

USD Housing Starts

USD

Thu May 16

12:30

USD Building Permits (MoM)

USD

Thu May 16

12:30

USD Consumer Price Index (MoM)

USD

Thu May 16

12:30

USD Consumer Price Index Ex Food & Energy

USD

Thu May 16

12:30

USD Consumer Price Index (YoY)

USD

Thu May 16

12:30

Consumer Price Index Ex Food & Energy

USD

Thu May 16

12:30

USD Housing Starts (MoM)

USD

Thu May 16

14:00

USD Philadelphia Fed.

USD

Thu May 16

23:50

JPY Machine Orders (YoY)

JPY

Fri May 17

13:55

USD U. of Michigan Confidence

USD

Fri May 17

14:00

USD Leading Indicators

USD

 

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