USD/JPY Fundamental Analysis October 25, 2012 Forecast

Posted October 24, 2012 6:32 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
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USD/JPY Fundamental Analysis October 25, 2012 Forecast

Analysis and Recommendation:

The USD/JPY is trading at 79.86 pushing the 80 price but unable to break through. Weak earnings in the US and Europe continue to weigh on the currency markets especially on the JPY. The greenback continues to rise, as eco data shows the US on the way to recovery. This morning’s Chinese PMI did little to support the JPY but eased the US dollar as traders looked for a bit more risk.

Japan continues to deal with a very strong yen, which has hurt imports and exports and weighs heavily on the economy. Government officials are putting a lot of pressure on the BoJ to introduce additional stimulus to help improve the economy and also to ease the strength of the JPY.

This week’s widening trade balance will help push the BoJ into action. Traders are expecting the BoJ to at least double its current asset purchase plan to 10billion yen.

The BoJ is scheduled to meet on October 30th.

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 24, 2012 actual v. forecast

Date	Currency	Event	Actual	Forecast	Previous
Oct. 24	AUD	CPI (QoQ)	1.4%	1.1%	0.5%
	AUD	Trimmed Mean CPI (QoQ)	0.7%	0.6%	0.5%
	CNY	Chinese HSBC Manufacturing PMI	49.10		47.90

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

Date	Time	Currency	Event	Forecast	Previous
Oct. 25	13:30	USD	Core Durable Goods Orders (MoM)	0.8%	-1.6%
	13:30	USD	Durable Goods Orders (MoM)	7.1%	-13.2%
	13:30	USD	Initial Jobless Claims	370K	388K
	13:30	USD	Continuing Jobless Claims	3255K	3252K
	15:00	USD	Pending Home Sales (MoM)	2.1%	-2.6%
	22:45	NZD	Trade Balance	-825M	-789M

Government Bond Auction

Date Time Country

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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