USD/JPY Weekly Fundamental Analysis October 15-19, 2012 Forecast

Posted October 13, 2012 8:49 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
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USD/JPY Weekly Fundamental Analysis October 15-19, 2012 Forecast

Weekly Analysis and Recommendation:

The USD/JPY closed at 78.44,after the dollar rose against the yen on Friday, lifted by news that Japanese mobile carrier Softbank is in advanced talks on a multi-billion-dollar buyout deal with Sprint Nextel.

Date	Last	Open	High	Low	Change %
Oct 12, 2012	78.44	78.42	78.53	78.29	0.04%
Oct 11, 2012	78.41	78.08	78.59	77.95	0.42%
Oct 10, 2012	78.08	78.24	78.37	78.04	-0.21%
Oct 09, 2012	78.24	78.30	78.43	78.15	-0.07%
Oct 08, 2012	78.29	78.71	78.71	78.09	-0.53%

Softbank is eyeing a monster $25 billion buy-in to the US telecom market including the takeover of Sprint Nextel in what could be one of Japan Inc.’s biggest-ever overseas acquisition, reports said Friday. Sprint Nextel said it was talking to Softbank on a possible takeover by Japan’s third largest mobile carrier, while Softbank also confirmed on talks with the US firm but noted no decisions had been made yet. The way of financing varies; the firm may have some dollar holdings. Still, there should be dollar-buying to a certain extent. Banks, asked by the telecom firm, will likely purchase dollars over a certain period of time. The dollar was also supported against the yen after Japanese finance minister Koriki Jojima expressed at the Group of Seven meeting in Tokyo concerns about the high levels of the currency, dealers said.

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 of October 8-12, 2012 actual v. forecast for Yen, the Aussie, the Kiwi and USD

Date	Currency	Event	Actual	Forecast	Previous
Oct. 08	NZD	NZIER Business Confidence	8		-4
Oct. 09	JPY	Adjusted Current Account	0.72T	0.52T	0.34T
	AUD	NAB Business Confidence	0		-3
Oct. 10	AUD	Westpac Consumer Sentiment	1.00%		1.60%
	USD	10-Year Note Auction	1.700%		1.764%
Oct. 11	AUD	Employment Change	14.5K	3.8K	-9.1K
	USD	Import Price Index (MoM)	1.1%	0.7%	1.1%
	USD	Trade Balance	-44.2B	-44.0B	-42.5B
	USD	Initial Jobless Claims	339K	370K	369K
	USD	Continuing Jobless Claims	3273K	3275K	3288K
Oct. 12	JPY	Tertiary Industry Activity Index (MoM)	0.4%	0.5%	-1.9%
	USD	Core PPI (MoM)	0.0%	0.2%	0.2%
	USD	PPI (MoM)	1.1%	0.7%	1.7%
	USD	PPI (YoY)	2.1%	1.8%	2.0%
	USD	Core PPI (YoY)	2.3%	2.5%	2.5%
	USD	Michigan Consumer Sentiment	83.1	78.0	78.3
	USD	Federal Budget Balance	75.0B	42.0B	-191.0B

Historical: From 2010 to present

Highest: 94.99 on May 05, 2010

Average: 82.77 over this period

Lowest: 75.58 on Oct 31, 2011

Economic Highlights of the coming week that affect the AUD, JPY, NZD and USD

Date	Time	Currency	Event	Forecast	Previous
Oct. 15	01:30	AUD	Home Loans (MoM)		-1.0%
	05:30	JPY	Industrial Production (MoM)		-1.3%
	13:30	USD	Core Retail Sales (MoM)	0.5%	0.8%
	13:30	USD	NY Empire State Manufacturing Index	-5.0	-10.4
	22:45	NZD	CPI (QoQ)	0.6%	0.3%
Oct. 16	13:30	USD	Core CPI (MoM)	0.2%	0.1%
	13:30	USD	CPI (MoM)	0.4%	0.6%
	13:30	USD	CPI (YoY)	1.8%	1.7%
	13:30	USD	Core CPI (YoY)	2.0%	1.9%
	14:00	USD	TIC Net Long-Term Transactions		67.0B
	14:15	USD	Industrial Production (MoM)	0.2%	-1.2%
Oct. 17	13:30	USD	Building Permits	0.810M	0.801M
	13:30	USD	Housing Starts	0.770M	0.750M

Government Bond Auction

Date Time Country

Oct 15 09:10 Slovakia

Oct 15 10:00 Norway

Oct 16 08:30 Spain

Oct 16 09:10 Greece

Oct 16 09:30 Belgium

Oct 17 09:10 Sweden

Oct 17 09:30 Germany

Oct 17 09:30 Portugal

Oct 17 10:00 Norway

Oct 17 14:30 Sweden

Oct 18 08:30 Spain

Oct 18 08:50 France

Oct 18 09:30 UK

Oct 18 09:50 France

Oct 18 14:30 Sweden

Oct 18 15:00 US

Oct 18 17:00 US

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About: FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

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