USD/JPY predictions january 30 2012

forex trading outlook today - USD/JPY predictions january 30 2012 : The Core Personal Consumption spending (PCE) Price Index measures the changes in the price of goods and services purchased by consumers for the purpose of consumption, excluding food and energy. Prices are weighted according to total expenditure per item. It measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

Personal Spending measures the change in the inflation-adjusted value of all spending by consumers. Consumer spending accounts for a majority of overall economic activity. However, this report tends to have a mild impact, as government data on retail sales is released about two weeks earlier.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

Analysis and Recommendation:

USD/JPY was trading at 77.05

The U.S. Dollar was lower against the Japanese Yen on Friday after the release of Japanese data on Tokyo Core CPI. With more Cope Reports due on Monday

The duo will seek at support at 76.87, and resistance at 78.28.

Early information showed that Tokyo's core consumer price inflation fell unexpectedly to at annualized rate of -0.4% last month from -0.3% in the preceding month. Monday Japanese CORE reports will be released.

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