USD/JPY Fundamental Analysis December 20, 2012, Forecast

Analysis and Recommendation:

The USD/JPY is trading above the 2012 high at 84.32 climbing today as newly elected Prime Minster Shinzo Abe has his first meeting with the Bank of Japan governor ahead of the monthly Bank of Japan meeting. Liberal Democratic Party President Shinzo Abe, who will become prime minister on Dec. 26, and New Komeito leader Natsuo Yamaguchi agreed yesterday to compile a large-scale supplementary budget for fiscal 2012 as they kicked off talks to form a coalition government.

Shinzo Abe also met with Bank of Japan Gov. Masaaki Shirakawa earlier in the day and urged the central bank to set an annual inflation target of 2 percent for the consumer price index. In their chat held a day ahead of a two-day BOJ Policy Board meeting, Abe also told Shirakawa that his incoming government wants to reach a policy accord with the BOJ under which the bank will set the inflation target and keep pursuing monetary easing until achieving it.

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.

Economic Data December 19, 2012 actual v. forecast

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

 

Government Bond Auction

Date Time Country 

Dec 20 10:30 UK 

Dec 20 16:30 Italy  

Dec 20 18:00 US 

Dec 21 16:30 Italy