USD/JPY Fundamental Forecast – May 31, 2016

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Published: May 30, 2016, 04:31 UTC

The USD/JPY is trading at 111.00 as the US dollar continued to strengthen helping lower the value of the Japanese yen, which in turn is helping the BoJ

USD/JPY Fundamental Forecast – May 31, 2016

The USD/JPY is trading at 111.00 as the US dollar continued to strengthen helping lower the value of the Japanese yen, which in turn is helping the BoJ refrain from currency intervention. The dollar gained 64 points again the yen this morning. Bloomberg reported that the yen fell to a one-month low versus the dollar after an aide to Prime Minister Shinzo Abe said Japan needs to delay a sales tax hike scheduled for next year, underscoring the need for the government to sustain economic growth.

Japan’s currency slid for a second day against the greenback following comments by Federal Reserve Chair Janet Yellen Friday that higher interest rates in the coming months look “appropriate.” The dollar climbed against all but two of its 16 major peers after bullish bets on the currency jumped by the most since November last week amid a stream of comments from Fed officials backing the case for tighter policy as soon as June.

In addition to the latest round of hawkish-sounding comments from Yellen, political developments in Tokyo were also seen supporting the dollar against its Japanese counterpart.

Japanese Prime Minister Shinzo Abe plans to delay an increase in the sales tax by two and a half years, a government official said on Sunday. Japan is also seen compiling a supplementary budget to boost the sputtering economy, a move which is widely expected to be followed by further monetary easing by the Bank of Japan.

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.

Upcoming Economic Events that you should be monitoring:

Tuesday, May 31, 2016

Cur.	Event	Actual	Forecast	Previous
NZD	ANZ Business Confidence (May)			6.2
AUD	Building Approvals (MoM) (Apr)		-3.0%	3.7%
AUD	Current Account (Q1)		-19.5B	-21.1B
AUD	Private Sector Credit (MoM) (Apr)		0.5%	0.4%
EUR	CPI (YoY) (May)		-0.1%	-0.2%
EUR	Unemployment Rate (Apr)		10.2%	10.2%
USD	Core PCE Price Index (MoM) (Apr)		0.2%	0.1%
USD	Core PCE Price Index (YoY) (Apr)			1.6%
USD	Personal Spending (MoM) (Apr)		0.6%	0.1%
CAD	GDP (MoM) (Mar)		-0.1%	-0.1%
CAD	GDP (QoQ) (Q1)			0.2%
CAD	GDP Annualized (QoQ) (Q1)		2.9%	0.8%
USD	S&P/CS HPI Composite – 20 n.s.a. (YoY)		5.1%	5.4%
USD	Chicago PMI (May)		50.6	50.4
USD	CB Consumer Confidence (May)		96.0	94.2