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USD/JPY Fundamental Analysis December 25, 2012, Forecast

By:
Barry Norman
Updated: Aug 21, 2015, 01:00 UTC

Analysis and Recommendation: The USD/JPY continued to climb in pre-holiday trading, as newly elected Prime Minister Abe pushes his economic and financial

USD/JPY Fundamental Analysis December 25, 2012, Forecast

Analysis and Recommendation:

The USD/JPY continued to climb in pre-holiday trading, as newly elected Prime Minister Abe pushes his economic and financial policies. The JPY is trading at 84.35.  Shinzo Abe said over the weekend that he will consider revising the Bank of Japan law if the central bank refuses to adopt the 2 percent inflation target he’s demanding at the next BOJ Policy Board meeting.

Abe, who has specifically called for a target of at least 2 percent, issued the warning on a TV program.

“We expect (the BOJ) to discuss it at the next Policy Board meeting” on Jan. 21 and 22, he said of his inflation-busting recommendation.

If the policymakers don’t give in, “we will revise the Bank of Japan law and set (the inflation target) by signing an accord with the BOJ,” Abe said, using veiled language to disguise his threat to strip the central bank of its independence.

Traders are worried just about how far Abe will push the BoJ and how they will respond. The BoJ continues to add additional stimulus, changing the inflation rate would not have that much effect on the current policy of the bank as they cannot even push the inflation limit of 1% at this time.

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 24, 2012 actual v. forecast

Date

Time

 

Currency

 

Importance

 

Event

Actual

 

Forecast

 

Previous

 

 

Dec. 24

08:00

 

TWD

 

 

 

Taiwanese Industrial Production (YoY) 

 

 

5.40% 

 

4.56% 

 

 

 

23:50

 

JPY

 

 

 

CSPI (YoY) 

 

 

-0.6% 

 

-0.7% 

 

 

 

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

Global markets are closed for the Christmas Holiday; many will reopen on Wednesday while some countries are out for additional days. There is no eco data on the calendar for December 25th. We will not print any fundamental analysis on Christmas day and will return on December 26th. I would like to wish all of my readers an enjoyable holiday season.

Government Bond Auction

Date Time Country 

Dec 26 01:30 Japan 

Dec 27 10:10 Italy  

Dec 28 10:10 Italy  

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