Daily Market Review 23 of January
U.S. exchanges rose on Tuesday despite disappointing figures out of the housing market, on growing hopes that fourth-quarter earnings will come in better than once feared.

The National Association of Realtors said that December existing home sales fell to 4.94 million units from 4.99 million in November, November figures were also revised down from 5.04 million.

Analysts had expected existing home sales to rise to 5.10 million last month. This disappointing numbers did little to the bullish sentiment.

At the close of U.S. trading, the Dow Jones Industrial Average closed up 0.46%, the S&P 500 index was up 0.44%, while the Nasdaq Composite index gained 0.27%.

On the other side of the Atlantic, sentiment improve in Europe yesterday after the ZEW Centre for Economic Research said that its index of German economic sentiment improved to 31.5 in January from a reading of 6.9 the previous month, blowing past expectations for a rise to 12.0.

In addition, the ZEW Centre for Economic Research said that its index of euro zone economic sentiment jumped to 31.2 this month from 7.6 in December, compared with expectations for a reading of 14.0.

Early in the morning today, Asian shares retreated from their previous highs amid concern that the earnings season that would start to pick up this week will come short of expectation. The Tokyo exchange fell to three-week low after a disappointing decision by the Bank of Japan.

The monetary easing announced on Tuesday by the Bank of Japan failed to provide an immediate stimulus as some had hoped, though both Japan new Prime minister and the Bank of Japan enounced several times that they will do whatever necessary to fight Japan Deflation.

The economic calendar for today is relatively thin with no major enouncement which will leave investors looking at the Earning report numbers and finalize their estimates for the Earning to come. Apple is due to enounce its earning after the US session today.

USD/JPY The yen appreciate against the U.S dollar for the third day on Wednesday after Tuesday’s Bank of Japan’s easing measures fell short of some market expectations.

The BoJ said yesterday that he set a 2% inflation target and he repeat his commitment to continue in his asset purchases program until the target has been met, following political pressure from Prime Minister Shinzo Abe to step up efforts to target deflation.

On the Technical perspective:

Support: 88.20, 86.86, 83.88

Resistance: 89.40, 90.15