EUR/JPY Weekly Fundamental Analysis, October 13-17, 2014 Forecast

Weekly Analysis and Recommendations:

The EUR/JPY  tumbled by 98 points to trade at 135.95 at the end of the week as the euro weakened and the JPY picked up momentum after the Bank of Japan meeting minutes release.  European Central Bank President Mario Draghi and German Finance Minister Wolfgang Schaeuble differed over what further steps to take if the euro-area economy keeps weakening as the region came under renewed foreign pressure to revive growth. The differences demonstrate the lack of a common front in euro-area policy making as its economy continues to deteriorate and the IMF estimates there is as much as a 40 percent risk of a third recession since 2008. Finance ministers and central bankers from the Group of 20 economies meet today, and Europe’s economic performance will be among the issues discussed, officials said.

The Bank of Japan flagged housing and industrial production as weak spots in the country’s economy, but held off launching fresh monetary easing measures after a two-day meeting

The central bank, which has been upbeat on Japan’s prospects, flagged housing and industrial production as weak spots in a statement outlining its unanimous decision. It added that an uptick in business sentiment has “paused” on the back of an April sales tax hike that led to a sharp contraction in second-quarter gross domestic product.

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.

Historical: From 2011 to Present

Highest: 143.00 JPY on September 2014

Average: 109.45 JPY over this period.

Lowest: 94.12 JPY on Jul 24, 2012

 

Upcoming Major Economic Events for the week of Oct 13-17, 2014