USD/JPY Fundamental Forecast – May 6, 2016

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Published: May 5, 2016, 04:11 UTC

The USD/JPY added 7 points to trade at 107.09 with low volume as Japan has been closed most of the week for local holidays. The Japanese yen, which is

The USD/JPY added 7 points to trade at 107.09 with low volume as Japan has been closed most of the week for local holidays. The Japanese yen, which is seen has a safe haven currency, remained relatively strong, with the dollar-yen pair down from levels over 111.50 last week. The currency pair this week tapped its lowest levels since October 2014, when the Bank of Japan launched its second massive round of quantitative easing.

The US dollar recovered a bit on Wednesday but dipped in the Asian session on Thursday in response to Atlanta Fed President Dennis Lockhart call for a June rate increase “a real option” this week, while San Francisco’s John Williams said he would support such a move at the next meeting provided the U.S. economy stayed on track.

The U.S. dollar shrugged off a number of mixed economic reports, including a weaker-than-expected private-sector employment data, and rose for a second day against its main rivals Wednesday.

Meanwhile, factory orders rose modestly in March and services sector ISM data for April came in slightly stronger than expected. The ICE U.S. dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.3% at 93.193. The index added to previous sessions advance which broke a six-day run of losses.

While the dollar weakened against its main rivals, it strengthened against commodity-linked currencies like the Canadian dollar, as well as most developing-market currencies like the Mexican peso and Turkish lira.

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:

Friday, May 6, 2016

Cur.	Event	Actual	Forecast	Previous
USD	FOMC Member Bullard Speaks
USD	FOMC Member Kaplan Speaks
USD	FOMC Member Lockhart Speaks
USD	FOMC Member Williams Speaks
AUD	RBA Monetary Policy Statement
USD	Average Hourly Earnings (MoM) (Apr)		0.3%	0.3%
USD	Nonfarm Payrolls (Apr)		202K	215K
USD	Participation Rate (Apr)			63.0%
USD	Private Nonfarm Payrolls (Apr)		193K	195K
USD	Unemployment Rate (Apr)		5.0%	5.0%
USD	Baker Hughes U.S. Rig Count			332