USD/JPY Fundamental Analysis – August 26, 2015 – Forecast

Analysis and Recommendation:

The USD/JPY added 137 to trade at 119.78 as the greenback recovered and the yen eased a bit after Monday’s market panic.  The dollar has been weakening against the currencies of major industrialized nations since Wednesday, when minutes from the last Fed meeting showed that several expressed doubt that inflation was rising fast enough to satisfy the conditions for a rate increase. The Fed next meets in mid-September.

The Japanese yen was the best-performing G-10 currency against the dollar Monday. It traded at ¥118.73 to the dollar Monday afternoon in New York, up 2.7% on the day. Early in the session, it briefly rose to ¥116.96 to the dollar — its highest intraday level since early February.

Japan’s history of low interest rates has made the yen a haven among the major currencies, said Matt Weller, senior technical analyst at Forex.com, so investors reflexively buy the yen when market turbulence rises. The Japanese currency has also benefited from the rout in emerging-markets currencies, as investors who are selling the Turkish lira and Brazilian real buy back the yen they’d sold used to fund those trades.

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:

 

Upcoming Economic Events that you should be monitoring:

Wednesday, August 26, 2015

Government Bond Auctions

Date Time Country

Aug 25 00:00 UK Announces details of Jan 2021 gilt

Aug 25 17:30 Italy Announces details of BTP/CCTeu on 28 Aug

Aug 25 19:00 US Holds 2-year note auction

Aug 26 11:10 Italy Eur 3bn 0.15% Aug 2017 CTZ

Aug 26 19:00 US Holds 2-year FRN note auction

Aug 26 12:05 Norway Holds bond auction

Aug 26 19:00 US Holds 5-year note auction

Aug 26 19:00 US Holds 2-year FRN auction

Aug 27 11:03 Sweden Sek 0.5bn 0.125% I/L Jun 2019, Sek 0.5bn 1% Jun 2025 bonds

Aug 27 19:00 US Holds 7-year note auction

Aug 28 11:10 Italy Auctions BTPs/CCTeus

Sep 01 11:15 Austria Holds RAGB bond sale

Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt

Sep 02 11:03 Sweden Holds bond auction

Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl

Sep 02 11:30 UK Auctions new Jan 2021 Gilt

Sep 03 10:30 Spain Auctions Bonos/Obligaciones

Sep 03 11:10 France Auctions OATs

Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep

Sep 03 00:00 US Announces details of 10-year note on 09 Sep