USD/JPY Fundamental Analysis August 28, 2012, Forecast

Posted August 27, 2012 4:33 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
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Analysis and Recommendation:

The USD/JPY is trading at 78.75 breaking out of its range in the low 78.00 level. The US dollar continues to gather momentum, even though the likelihood of Fed stimulus was peaked after a letter from Ben Bernanke to Rep Issa in the US said that the Fed had the ability to do more to assist the economy and intended to do so at the proper time, this letter was drafted after the recent economic releases that caused investors to question the outcome of the FOMC, after minutes released earlier this week from last month’s meeting supported stimulus.

The JPY has been dealing with internal turmoil both politically and financially after a rash of negative eco reports and little support from the BoJ. Last week’s Trade Balance report was negative for Japan and this week we are looking at Retail Sales and Industrial Production and Core CPI.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data August 24 & 27, 2012 actual v. forecast (there were no releases for the AUD, NZD or JPY on Monday morning)

Date

Currency

Event

Actual

Forecast

Previous

Aug. 24

AUD

RBA Governor Stevens Speaks

JPY

BoJ Governor Shirakawa Speaks

GBP

Business Investment (QoQ)

-1.5%

2.8%

1.9%

GBP

GDP (QoQ)

-0.5%

-0.5%

-0.7%

GBP

GDP (YoY)

-0.5%

-0.6%

-0.8%

USD

Core Durable Goods Orders (MoM)

-0.4%

0.5%

-2.2%

USD

Durable Goods Orders (MoM)

4.2%

2.4%

1.6%

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date	Time	Currency	Event	Previous
Aug. 28	15:00	USD	CB Consumer Confidence	65.9
	02:30	AUD	Construction Work Done (QoQ)	5.5%
Aug. 29	23:45	NZD	Building Consents (MoM)	5.7%
	00:50	JPY	Retail Sales (YoY)	0.2%
	02:30	AUD	Building Approvals (MoM)	-2.5%
Aug. 30	02:30	AUD	Private New Capital Expenditure (QoQ)	6.1%
Aug. 31	00:30	JPY	Tokyo Core CPI (YoY)	-0.6%
	00:50	JPY	Industrial Production (MoM)	0.4%

Government Bond Auctions

Date Time Country

28/8 10:30 Spain

28/8 11:00 Italy

28/8 19:00 US

29/8 11:00 Italy

29/8 19:00 US

30/8 05:35 Japan

30/8 11:00 Italy

30/8 19:00 US

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About: FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

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