USD/JPY Daily Fundamental Analysis for August 08, 2011

The USD/JPY pair fluctuated last week sharply after the BOJ intervened in the FX market and sold the yen, as the Japanese currency retreated against most of its major counterparts due to the selling pressure from the BOJ.

On the other hand, the global stock markets dropped sharply on concerns about the outlook of the global economy recovery, where investors are looking for safer investments, which could bring the Japanese yen higher once again.

On Monday at 23:50 GMT (Sunday),Japanwill release the current account total for June, where the previous reading showed a surplus of 590.7 billion yen, while it’s expected to show a surplus of 652.8 billion yen.

The adjusted current account total for June is expected to show a surplus of 961.1 billion yen from the previous surplus of 391.0 billion. On the other hand, the trade balance for June is predicted to show a surplus of 113.1 billion from the prior deficit of 772.7 billion.

At 05:00 GMT, Japan will release the Eco Watchers Survey: Current for July, where the previous reading was 49.6 and expected to come at 50.0, while the Eco Watchers Survey: Outlook had a prior reading of 49.6.