Bullish market flowThe JXY is showing bullish market flow, with the RSI consolidating above the 50 line, the CCI at the bottom of a down stroke, and price making new structure highs. The 20 and 50 DEMA are trending up with price. Volatility increased on Friday due to profit taking and the upcoming Lunar New Year holiday in Asia. Speculators are betting that the Bank of Japan, the last major central bank to still employ a loose monetary policy, is edging toward a shift to a tighter stance. Japan's core consumer prices in December rose 4.0% from a year earlier, double the BOJ's target. Experts believe that the dollar/yen pair will continue to decrease and that the dollar will move back into the 130-135 yen range. The greenback has been mostly on the defensive this week, as data from consumer spending to business activity and inflation across major economies highlighted an increasingly fragile outlook for U.S. growth. Investors are waiting for the first Federal Reserve meeting of the year in early February to see if it raises interest rates.
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