USD/JPY Fundamental Analysis October 25, 2012 Forecast

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USD/JPY Fundamental Analysis October 25, 2012 Forecast

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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