FX weekly — DXY and 14 currency pair levels and targets

USD/JPY and JPY cross pairs remain deeply overbought and a long way yet to drop. Long term targets to USD/JPY and JPY cross pairs as follows: USD/JPY : 146.07, 138.01, 133.26, 129.72.

GBP/JPY: 181.06, 172.87, 168.89, 167.40.

EUR/JPY: 157.78, 150.05, 145.89, 143.39.

CAD/JPY: 107.74, 102.97, 100.21, 98.59.

CHF/JPY: 164.20, 153.01, 146.39, 141.63.

AUD/JPY: 95.49, 92.22, 90.78, 89.91.

NZD/JPY: 88.58, 85.51, 83.98, 82.83.

The topic of the Himino speech addressed the concept to overall changes in Japanese firms to Wages, Prices and the relationship to both in operation within CPI and the Japanese economy.

While the Himino speech was an important supposition to monetary policy and the age old dilemma to wages and prices, Himino's journey was a pure speculative venture to how the Wage / Price concept possibly leaves what he termed the frozen state. Then the further concepts on how to understand  and view wages and prices in relation to households, corporates and Japanese financial institutions.

Himino then walks us through the 4 stages of developments to price increases and decreases, labor costs, purchase and selling prices and wages.

As brilliant as the BOJ presented themselves since 2016, Himino loses the Wage / Price concept in stage 1 as stage 1 is home to the not controllable price from the West through  Imported Inflation and the changing market price of Oil. How is Imported Inflation and Oil controlled without imposing a radical concept as Autarky in Japan's prices.

As Himino stated in a number of instances, the complexities to Wages, Prices and satisfaction to prevent deflation may never materialize.

Throughout the speech, Himino stated, if the wage/price concept was ever satisfied, the question to Monetary Easing must be revisited.

Himino's big mouth by design or not intentioned, unleashed USD/JPY and cross pairs selling.

The alarming aspect to the Himino speech was how a speculative speech turned into psychotic reports of end Negative interest rates, BOJ December was most vital, new monetary policy, Easing discontinued.

The currency analysts and leading Website voices  of our day revealed they are beyond repair.

Stage 1 Firms reflect higher import prices in selling prices.

Stage 2 Firms reflect higher general price levels in wages.

Stage 3 Firms reflect higher labor costs in selling prices.

Stage 4 Firms' pricing policies become more diverse, facilitating firms to explore strategies of selling more.attractive products and services at commensurate prices, not just good products and services at low prices.

The week

GDP for Japan rose by 0.2 while websites reported a loss by 0.2. A higher negative = increase.

The wildcards to the week are GBP/USD and USD/JPY as both begin the week in perfect neutrality. GBP/USD below must break 1.2515 and USD/JPY higher must clear 146.80.

Oversold GBP/NZD and EUR/NZD begin the week deeply oversold as GBP/NZD sits at vital 2.0100 and EUR/NZD at 1.7300's.

EUR/USD must break 1.0807 to range from 1.0807 to 1.0875. EUR/USD longs are assisted by oversold EUR/CHF, EUR/JPY, EUR/NZD, EUR/AUD and EUR/GBP.

EUR/AUD and GBP/AUD trade deeply oversold.

GBP/CAD and EUR/CAD remain locked in tiny ranges by many and massive supports below the current opening prices at 1.7034 and 1.4612.

AUD/USD trades from 0.6541 to 0.6759 and no changes from the past 2 weeks. Same story for NZD/USD to trade from 0.6065 to 0.6260.