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During the session on Thursday, we have Unemployment Claims coming out of the United States, and Unemployment Change coming out of Germany. This of course leads us to pay attention to the EUR/USD currency pair, as well as both of those currencies against other currencies in the Forex world. We believe that we should get some clarity later in the session as to which direction they both want to go.

1 – Ultimately, we believe that the USD/JPY may be “Ground Zero” for the session on Thursday, as the Bank of Japan releases its Monetary Policy Statement. We are believers of the idea of quantitative easing coming out of Japan, or at least an attempt to talk the value of the Yen down. With this, we are call buyers in the EUR/JPY pair, GBP/JPY pair, and USD/JPY pair. All of those pairs should show strength.

2 – Looking to precious metals, we believe it will be choppy with an upward bias for both gold and silver. We more than likely will stay out of this market’s though, because they simply are not appealing at the moment. Having said that though, we did form a nice bounce in the WTI Crude Well market, and we believe that market may reenter the previous consolidation area meaning that we could go as high as $48 of the next several sessions. To say the least, we are a bit surprised after we had seen such weakness.