USD/JPY Fundamental Analysis September 17, 2012, Forecast

Posted September 14, 2012 5:15 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
Add a comment

Category:

Fundamental Reports

Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

Analysis and Recommendation:

The USD/JPY saw the US dollar continue to weaken to trade as low as 77.13 before settling around the 77.50 level. The pair is trading at 77.65 on Friday as Asian markets are ready to close. The reason the EUR/USD reacted more significantly to the easing than did the USD/JPY is because, at the time, the monetary policies of the U.S. and Euro zone were more divergent than those today in the U.S. and Japan.

The market had been talking about it for weeks and investors had plenty of time to position for the announcement — classic sell-the-rumor, buy-the-news. That’s not to say this time around the dollar won’t remain weak. If Europe doesn’t give investors a reason to seek safety in the U.S. dollar, the EUR/USD could extend its gains. However losses in USD/JPY could be limited to 76, as investors grow weary of Bank of Japan intervention.

Retail sales, consumer prices, industrial production and the University of Michigan Consumer Sentiment index are scheduled for release later today.

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 September 14, 2012 actual v. forecast

Date

Time

Currency

Importance

Event

Actual

Forecast

Previous

Sep. 14

05:30

JPY

Industrial Production (MoM)

-1.0%

-1.2%

Economic Data September 13, 2012 actual v. forecast for the US, since markets were too focused on the FOMC, it is important to look at the entire picture.