USD/JPY Fundamental Analysis – August 18, 2015 – Forecast

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Published: Aug 17, 2015, 04:35 UTC

Analysis and Recommendation: The USD/JPY added 12 points after GDP missed expectations this morning. Japan’s economy contracted last quarter as consumers

USD/JPY Fundamental Analysis – August 18, 2015 – Forecast

Analysis and Recommendation:

The USD/JPY added 12 points after GDP missed expectations this morning. Japan’s economy contracted last quarter as consumers and businesses cut spending and exports tumbled, putting pressure on the prime minister to return his focus to Abenomics.

Gross domestic product fell an annualized 1.6 percent from January-March, ending two quarters of growth, the Cabinet Office said on Monday. The median estimate in a Bloomberg survey was for a 1.8 percent drop.

The slump in private-sector demand came as exports to the U.S., Asia, and Europe fell, undercutting a support for the world’s third-biggest economy. Economy Minister Akira Amari said he doesn’t expect to add fiscal stimulus and Bank of Japan Governor Haruhiko Kuroda is counting on weakness to fade this quarter as he chases a distant 2 percent inflation target with unprecedented monetary stimulus.

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Today’s economic releases: