USD/JPY Forecast Jan. 19, 2012, Fundamental Analysis

USD/JPY Forecast Jan. 19, 2012, Fundamental Analysis
USD/JPY Forecast Jan. 19, 2012, Fundamental Analysis
The USD/JPY pair dropped for the third day, where the US dollar and the yen continued to lose ground against other majors, giving the higher-yielding currencies a chance to recover from previous losses.

The U.S. economy is showing many signs of recovery in different sectors, which could reflect negatively on the greenback as a safe haven, where investors will increase their appetite for risky assets.

On Thursday at 13:30 GMT, the U.S. economy will release the Consumer Price Index for December, where the prior reading was 0.0% and it’s expected to come at 0.1%. The annual CPI had a prior reading of 3.4% and expected to come at 3.1%.

The Housing Starts for December will be released also at 13:30 GMT, where the previous reading was up by 9.3% at 685 thousand, and expected to remain unchanged at 685 thousand. The U.S. Building Permits are expected with 0.7% drop to 675 thousand from the prior reading of 681 thousand.

The weekly initial claims are also due at the same time, where the number of people filing for first-time claims for the state unemployment insurance increased to 399 thousand last week.

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