USD/JPY Fundamental Analysis December 5, 2012 Forecast

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Updated: Aug 20, 2015, 23:00 UTC

Analysis and Recommendation: The USD/JPY saw the greenback lose a bit of momentum this morning to trade at 82.10. The market uncertainty along with

USD/JPY Fundamental Analysis December 5, 2012 Forecast

Analysis and Recommendation:

The USD/JPY saw the greenback lose a bit of momentum this morning to trade at 82.10. The market uncertainty along with political turmoil and the future plans for the Bank of Japan continue to weigh on the currency. This morning the yen rebounded a few pence as the greenback eased.

Speculators are projecting Shinto Abe to be the most likely Prime Minister and his plans and policies towards the Bank of Japan and the economy are confused and mixed. He wants to control the Bank of Japan and also force a higher inflation target and set rules that the bank will need to continue to ease until the rate is met. He would also use the bank to buy construction bonds, which failed many years ago leaving the country in deflation.

Traders are very worried, with eco data for Japan continuing to show poor results and the possibility for recession.

While the US dollar faces the upcoming fiscal cliff, but traders are sure that a last minute deal will be struck.

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 4, 2012 actual v. forecast

Date	Currency	Event	Actual	Forecast	Previous
Dec. 04	AUD	Building Approvals (MoM)	-7.6%	-2.0%	9.5%
	AUD	Current Account	-14.9B	-14.8B	-12.4B
	AUD	Interest Rate Decision	3.00%	3.00%	3.25%

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

Date	Time	Currency	Event	Forecast	Previous
Dec. 05	00:30	AUD	GDP (QoQ)	0.6%	0.6%
	13:15	USD	ADP Nonfarm Employment Change	125K	158K
	13:30	USD	Nonfarm Productivity (QoQ)	2.7%	1.9%
	13:30	USD	Unit Labor Costs (QoQ)	-0.9%	-0.1%
	15:00	USD	ISM Non-Manufacturing Index	53.5	54.2
	20:00	NZD	Interest Rate Decision	2.50%	2.50%
Dec. 07	00:30	AUD	Trade Balance	-2.05B	-1.46B