USD/JPY Fundamental Analysis – August 5, 2015 – Forecast

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Published: Aug 4, 2015, 03:50 UTC

Analysis and Recommendation: The USD/JPY added 6 points as the US dollar continued to rally as traders seemed to move to the dollar as they ran from

USD/JPY Fundamental Analysis – August 5, 2015 – Forecast

Analysis and Recommendation:

The USD/JPY added 6 points as the US dollar continued to rally as traders seemed to move to the dollar as they ran from commodities. The USDJPY is trading at 124.09 nearing the top of its trading range. “The BOJ feels forced to defend its stimulus program because a lot of companies and households doubt if it’s really having an effect,” said Credit Agricole’s Ogata. “It’s very hard to see the impact on the actual economy.”

The Bank of Japan must be vigilant to the risk its massive stimulus programme could overheat the economy and create financial imbalances, board member Koji Ishida said on Thursday.

The former banking executive said he saw no immediate signs the central bank’s aggressive money printing was sowing the seeds of an asset bubble, and that such risks were something to worry about in the long-term.

But his warning about the rising costs of the BOJ’s aggressive money printing contrasts with the views of Governor Haruhiko Kuroda, who has mostly dismissed such risks and talked up the near-term benefits of the stimulus program.

Traders are waiting for the BoJ decision scheduled on Friday as well as the US nonfarm payroll report.

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:

Cur.	Event	Actual	Forecast	Previous
AUD	Retail Sales (MoM) (Jun)	0.7%	0.5%	0.4%
AUD	Trade Balance (Jun)	-2.933B	-3.100B	-2.677B
AUD	Interest Rate Decision (Aug)		2.00%	2.00%
AUD	RBA Rate Statement

Upcoming Economic Events that you should be monitoring:

Wednesday, August 5, 2015

Cur.	Event	Actual	Forecast	Previous
GBP	Services PMI (Jul)		58.0	58.5
USD	ADP Nonfarm Employment Change		215K	237K
USD	ISM Non-Manufacturing PMI (Jul)		56.2	56.0