USD/JPY Fundamental Forecast – June 30, 2016

Despite increased demand for risky assets, the USD/JPY weakened on Wednesday, slipping -0.08% or -0.085 to 102.663. The Forex pair was still up from last week’s low at 99.15, its weakest level since November 2013. Traders continued to worry about whether Japan would take any action to weaken the Yen if it continued to strengthen.

Japanese Prime Minister on Wednesday pledged to use all available policy tools to protect the economy from the fallout from Brexit. “A sense of uncertainty and worry about risks remain in the markets,” Japanese Prime Minister Shinzo Abe said at a meeting between the government and the Bank of Japan to discuss market developments and put in place safeguards against political instability.

Fresh threats from the Japanese government and another rise in global equity markets could help weaken the Japanese Yen against the U.S. Dollar the rest of the week.

Chart analysts are also watch the price action at a key 50% level at 102.768. Overcoming this level will signal the presence of buyers.

FxEmpire provides in-depth analysis for each asset 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, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

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Thursday, June 30, 2016

Government Bond Auctions

Jun 30 11:10 Italy Holds bond auction