USD/JPY Fundamental Analysis October 10, 2014 Forecast

The weakness in the global equity markets continued to drive the USD/JPY lower because of the carry trade. Traders who borrowed in Yen to invest into stocks are now selling stocks and returning the borrowed money to the Japanese banks.

The main trend is down on the daily chart and this trend is likely to continue as long as support for equities continues to erode.

On Friday, traders are likely to react to the release of the latest Bank of Japan minutes.

Look for early weakness because of the downside momentum by U.S. equity indices into the close. The USD/JPY could firm if stocks become stable. Otherwise, look for more selling pressure if equities continue to sell-off.

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 up to the data analysis and information in our weekly reports. 

Today’s Economic Releases

 

                Currency                                                  Event                                                     Forecast        Previous

                 

                 EUR                                          French Industrial Production                                 -0.2%             0.2%

                 GBP                                          Trade Balance                                                       -9.6B             -10.2B

                 CAD                                          Employment Change                                            18.7K            -11.0K

                 CAD                                          Unemployment Rate                                              7.0%              7.0%

                 USD                                          Import Prices m/m                                                -0.5%             -0.9%

                 USD                                          FOMC Member Plosser Speaks

                 ALL                                           IMF Meetings

                 CAD                                          BOC Business Outlook Survey

                 ALL                                           G20 Meetings

                 USD                                          FOMC Member Fisher Speaks