Monday, January 28th, 2008 (10:00 a.m. New York Time) USA
At 10:00 a.m we will have U.S. New Home Sales coming out. It is expected to come out at 645K. Last month it came out at 647 K so it was a very shocking negative number. This time I would trade it on the USD/JPY. If it comes out at 700 K or higher, then I think it would constitute a good buy signal on the USD/JPY. If it comes out at 550 K or lower so a very large trigger on a negative side, then I think it would be enough to put a sell trade on USD/JPY and look for 30 to 40 pips of movement, if not more. The reason why I set up much bigger trigger on the lower side is because the negative news on housing is largely priced in so it is not shocking to the market any more. Be very careful on this one, you really need to have a shocking number if you want to sell USD/JPY.