USD/JPY Fundamental Analysis December 22, 2014 Forecast

Analysis and Recommendation:

The USD/JPY soared 23 points as the JPY eased and the dollar added a few pips this morning. The greenback gained to trade at 89.47. Now that Prime Minister Abe has securely won re-election his economic plans are back on full steam. Prime Minister Shinzo Abe’s government will budget about 3.5 trillion yen for measures meant to rekindle economic growth, bringing more fiscal firepower to bear on Japan’s slump than previously expected, the Nikkei reported today. Cabinet will approve the stimulus package as early as Dec. 27. It was originally expected to be worth between 2 trillion yen and 3 trillion yen.

The Fed meeting this week took place after a series of government reports showing that the U.S. economy is on a stronger footing. Payrolls last month posted the biggest increase in almost three years, while retail sales rose the most in eight months.

The BOJ completed a two-day meeting today and reiterated its plan to expand its monetary base at an annual pace of 80 trillion yen ($676 billion), matching forecasts by all 33 economists surveyed by Bloomberg News.

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 actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Monday, December 22nd

Government Bond Auction

Date Time Country Auction

Dec 22 18:30 Italy Announces details of BOT/CTZ auctions on Dec 29

Dec 22 20:00 US Auctions 2-yr Notes

Dec 23 18:30 Italy Announces details of BTP/CCTeu auctions on Dec 30

Dec 23 20:00 US Auctions 2-yr FRN, plus 5-yr Notes

Dec 24 20:00 US Auctions 7-yr Not