USD/JPY Fundamental Analysis December 7, 2012, Forecast

Analysis and Recommendation:

The USD/JPY is trading at 82.49 as the yen continues to tumble. Political intrigue and uncertainty in Japan continue to weigh on the yen. A speech from BoJ Deputy Governor Nishimura has raised expectations for action at the central bank’s final meeting on December 20th. Given that the BoJ remains committed to its 1.0% inflation target, and that the current asset purchase program is slated to cease expanding by the end of 2013, Nishimura’s statement that ‘the Bank will continue to operate the Program beyond that date’ suggests an increasing probability of further easing and thus a decline in JPY. Nishimura commented on the currency impact of BoJ policy, stating that it has ‘mitigated the negative effects stemming from the appreciation of the yen. With Shinto Abe in the lead in the current elections markets are worried about his view of the Japanese economy and the independence of the Bank of Japan.

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 6, 2012 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Dec 07 16:30 Italy  

Dec 10 10:10 Norway 

Dec 10 10:10 Slovakia 

Dec 10 15:30 UK 

Dec 10 16:30 Italy  

Dec 11 09:30 Spain 

Dec 11 10:10 Greece 

Dec 11 10:15 Austria 

Dec 11 10:30 Belgium 

Dec 11 10:30 UK 

Dec 11 18:00 US