USD/JPY Fundamental Analysis October 24, 2012 Forecast

Posted October 23, 2012 6:36 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
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USD/JPY Fundamental Analysis October 24, 2012 Forecast

Analysis and Recommendation:

The USD/JPY is marching with its neighbors and remains flat, trading at 79.85 after the USD pushed up towards the all important 80 price level yesterday, losing momentum right before it was able to break through. There are little in the way of eco or event risk today and again tomorrow. The trade balance remains negative on the JPY and comments from the BoJ have been very negative. Markets are hoping for the BoJ to change monetary policy next week but it will most likely hold especially in view of the change in the JPY. There was some disappointing economic news from Japan that suggests the Bank of Japan might implement fresh monetary stimulus measures soon. Otherwise, it was a quiet start to the new trading week in Asia and Europe. Tensions in the Middle East are ratcheting a bit higher following fresh violence in Lebanon. The U.S. dollar index traded slightly higher Monday after a weaker start to the day.

The Japanese government on Tuesday piled fresh pressure on the BOJ to ease again, with the economics minister saying he wanted to attend next week’s rate review to reiterate a call for bolder action to bolster the economy.

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 October 23, 2012 actual v. forecast

Date		Currency			Event	Actual	Previous
Oct. 23		AUD			CB Leading Index (MoM)	-0.8%	0.0%

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

Date	Time	Currency	Event	Forecast	Previous
Oct. 24	01:30	AUD	CPI (QoQ)	1.1%	0.5%
	01:30	AUD	Trimmed Mean CPI (QoQ)	0.6%	0.5%
	02:45	CNY	Chinese HSBC Manufacturing PMI		47.90
	15:00	USD	New Home Sales	385K	373K
	21:00	NZD	Interest Rate Decision	2.50%	2.50%
Oct. 25	22:45	NZD	Trade Balance	-825M	-789M
Oct. 26	00:30	JPY	Tokyo Core CPI (YoY)	-0.5%	-0.4%

Government Bond Auction

Date Time Country

Oct 24 09:10 Sweden

Oct 24 09:30 Germany

Oct 24 14:30 Sweden

Oct 24 15:30 Italy

Oct 24 16:30 US

Oct 25 00:30 Japan

Oct 25 09:10 Sweden

Oct 25 15:30 Italy

Oct 25 17:00 US

Oct 26 09:10 Italy

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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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