USD/JPY Weekly Fundamental Analysis – February 8-12, 2016 -Forecast

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Published: Feb 6, 2016, 06:09 UTC

Weekly Analysis and Recommendation: The USD/JPY is trading at 116.89 with the pair declining 3.44% this week with the US dollar falling and the safe haven

USD/JPY Weekly Fundamental Analysis – February 8-12, 2016 -Forecast

Weekly Analysis and Recommendation:

The USD/JPY is trading at 116.89 with the pair declining 3.44% this week with the US dollar falling and the safe haven yen gains. JPY is entering February just below its December close, having fully retraced its YTD gains following the BoJ’s surprise easing on January 29th. Overall movement in JPY remains constrained, as weak fundamentals are offset by the supportive influence of sentiment and positioning.

The dollar rebounded from a three-month low against the euro after a U.S. employment report showed wage growth that exceeded estimates, bolstering the case for the Federal Reserve to continue raising interest rates this year.

The greenback climbed versus most of its major peers after data showed average hourly earnings rose 0.5 percent, hinting at a pickup in inflation toward the central bank’s 2 percent target. The jobs data provided temporary relief for the dollar, which posted the biggest two-day decline since 2009 this week on concern slowing economic growth may force the central bank to reverse its tightening course.

Following an overnight plunge below ¥117 on another series of weak U.S. economic indicators, the dollar hovered beneath the threshold in Tokyo trading on Friday as a wait-and-see mood strengthened ahead of the release of U.S. jobs data for January.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Major Economic Events for the week:


Date	Currency		Forecast
Feb 7	JPY	Current Account	1.59T
Feb 8	CAD	Building Permits m/m
	USD	Mortgage Delinquencies
Feb 9	AUD	NAB Business Confidence
	GBP	Trade Balance	-10.4B
	USD	JOLTS Job Openings	5.54M
	AUD	Westpac Consumer Sentiment
Feb 10	GBP	Manufacturing Production m/m	0.0%
Feb 11	CAD	NHPI m/m	0.3%
	USD	Unemployment Claims	287K
Feb 12	AUD	Home Loans m/m	2.9%
	EUR	German Prelim GDP q/q	0.3%
	EUR	Flash GDP q/q	0.3%
	USD	Core Retail Sales m/m	0.0%
	USD	Retail Sales m/m	0.1%
	USD	Import Prices m/m	-1.4%
	USD	UoM Consumer Sentiment	92.6
Feb 13