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USD/JPY Fundamental Analysis December 28, 2012, Forecast

By:
Barry Norman
Updated: Aug 21, 2015, 02:00 UTC

Analysis and Recommendation: The USD/JPY has broken above 85.84 for the first time since 2010 as the newly elected Prime Minister says that the government

USD/JPY Fundamental Analysis December 28, 2012, Forecast

USD/JPY Fundamental Analysis December 28, 2012, Forecast
USD/JPY Fundamental Analysis December 28, 2012, Forecast
Analysis and Recommendation:

The USD/JPY has broken above 85.84 for the first time since 2010 as the newly elected Prime Minister says that the government will do everything in its power to stimulate the economy regardless of how weak the JPY becomes. This worries traders as Japan is known for deflation, even though Prime Minister Abe wants to set a new inflation goal over 2%, while the BoJ has it set at 0-1% which they still have not obtained.

Prime Minister Shinzo Abe has already made comments on setting an inflation target of 2%, maintaining dollar-yen level  in the ¥85-¥90 range, and appointing a Bank of Japan Governor whose views were aligned to those of the government.

Also, Japan’s newly-elected government won’t abide by a ceiling on bond issuances when it decides on the size of an upcoming supplementary budget, aimed at providing a stimulus to the ailing economy, Finance Minister Taro Aso said, according to media reports.

Minutes from the Nov. 19-20 meeting of the Japanese central bank showed some monetary-policy-committee members saying measures should be adjusted to better drive the forex market.

Across the Pacific, President Obama assured markets that US lawmakers would continue their negotiations beginning today and would reach a deal before the Jan 1, 2013 deadline.

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 27, 2012 actual v. forecast

Date

Time

 

Currency

 

Importance

 

Event

Actual

 

Forecast

 

Previous

 

 

Dec. 27

00:00

 

USD

 

 

 

Richmond Manufacturing Index 

5

 

12 

 

 

 

 

06:00

 

KRW

 

 

 

South Korean manufacturing BSI

75.00

 

 

 

69.00 

 

 

 

12:30

 

THB

 

 

 

Thai Industrial Production (YoY) 

83.3%

 

68.5% 

 

36.0% 

   

 

14:00

 

JPY

 

 

 

Housing Starts (YoY) 

10.3%

 

10.0% 

 

25.2% 

   

 

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

As the year end approaches markets are very thin and there is very little eco data available

Date

Time

 

Currency

 

Importance

 

Event

Actual

 

Forecast

 

Previous

 

 

Dec. 28

01:00

 

PHP

 

 

 

Philippines Trade Balance 

 

 

 

 

-483.0M 

 

 

 

01:30

 

JPY

 

 

 

Average Cash Earnings (YoY) 

 

 

-0.4% 

 

-0.4% 

   

 

01:30

 

KRW

 

 

 

South Korean Retail Sales (MoM) 

 

 

0.3% 

 

-0.8% 

 

 

 

04:30

 

THB

 

 

 

Thai Industrial Production (YoY) 

 

 

28.3% 

 

36.1% 

 

 

 

07:30

 

THB

 

 

 

Thai Trade Balance 

 

 

 

 

-0.10B 

 

 

 

07:30

 

THB

 

 

 

Thai Private Consumption (MoM) 

 

 

 

 

0.4% 

 

 

 

07:30

 

THB

 

 

 

Thai Private Investment 

 

 

 

 

0.90% 

   

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