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USD/JPY Fundamental Analysis December 31, 2012, Forecast

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

Analysis and Recommendation: The USD/JPY continues to climb to trade at 2 year highs trading this morning at 86.39. As Shinzo Abe moves like a bull in a

USD/JPY Fundamental Analysis December 31, 2012, Forecast
USD/JPY Fundamental Analysis December 31, 2012, Forecast
USD/JPY Fundamental Analysis December 31, 2012, Forecast

Analysis and Recommendation:

The USD/JPY continues to climb to trade at 2 year highs trading this morning at 86.39. As Shinzo Abe moves like a bull in a China shop pushing things out of his way to implement his economic agenda to help the Japanese economy to recover.  Prime Minister Shinzo Abe’s Cabinet got down to work Thursday dismantling various policies of the previous administration, including the zero-nuclear target, and musing on a review of the 1993 Kono Statement, an apology for the coercion of women into sexual slavery during the war.

It will be hard for the incoming government to manage foreign exchange rates, departing economic and fiscal policy minister Seiji Maehara said. Japan is moving in “a good direction” as the yen’s rise has been corrected and stock prices have advanced, Maehara told a news conference. But it would be “difficult” to keep yen rates at levels the incoming government thinks are appropriate, Maehara added.

Japan should focus on efforts to enhance its economic growth potential instead of expanding fiscal spending through public works growth, he said. “It would be totally meaningless if super easy monetary conditions are not used to improve the strength of the real economy,” he said.

Data released this morning in Japan was gloomy, as industrial production continued to decline, although unemployment fell and retail sales climbed. The data is contrary and mixed.

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.

Markets will have a shortened day on Monday December 31st and  most are closed on Tuesday January 1, 2013. Our analysis will be published as markets close on Monday and there will be no analysis on Tuesday. I want to wish all of my readers a happy and healthy new year. I hope you continue reading our analysis next year.

 Economic Data December 28, 2012 actual v. forecast

Date

 

Currency

 

 

Event

Actual

 

Forecast

 

Previous

 

 

Dec 28 

 

KRW

 

 

South Korean Industrial Production

2.9%

 

0.8% 

 

-0.8% 

 

 

 

 

KRW

 

 

South Korean Industrial Production

2.3%

 

0.7% 

 

0.6% 

 

 

 

 

JPY

 

 

Unemployment Rate 

4.1%

 

4.2% 

 

4.2% 

 

 

 

 

JPY

 

 

Tokyo Core CPI (YoY) 

-0.6%

 

-0.5% 

 

-0.5% 

 

 

 

 

JPY

 

 

Industrial Production (MoM) 

-1.7%

 

-0.5% 

 

1.6% 

 

 

 

 

JPY

 

 

Retail Sales (YoY) 

1.3%

 

1.1% 

 

-1.2% 

 

 

 

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

Date

Time

Country

Event

Forecast

Previous

Jan. 01

01:00

CNY

Chinese Manufacturing PMI 

 

50.60 

 

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