USD/JPY Forecast Dec. 14, 2011, Fundamental Analysis

early Tuesday as the strong yen forced the pair to cover the previous gains, in which the pair reached its highest level in six days.

On the other hand, the US dollar was able to keep its previous gains against the euro and other major currencies, where the current market sentiment remains weak with the deepening debt crisis.

Moody’s Investors Service said it may put the ratings of eight Spanish banks on review for possible downgrade, which fueled concerns about the spreading debt crisis in the region.

On Wednesday at 04:30 GMT, the Japanese economy will issue the Industrial Production for October, where the previous reading was 2.4%, as for the annual reading it was up by 0.4%. The Japanese Capacity Utilization had a prior reading of –3.6%.

At 13:30 GMT, the U.S. economy will release the Import Price Index for November, which had a previous reading of –0.6% and expected to come at 0.9%.