USD/JPY Fundamental Analysis March 22, 2013 Forecast

Analysis and Recommendation:

The USD/JPY eased a bit this morning trading at 95.89 giving back 12 points. The currency had little reaction to the FOMC decision and statement yesterday, as the Fed held to its previous comments, the only deviation was the working that said that the US economy was showing a better recovery, but job markets were still weak but doing better. Yesterday, the reins of the Bank of Japan were officially handed over to “stimulus pro” Kuroda. Traders are expecting to see large stimulus injections at the early April meeting of the bank, although Mr. Kuroda might call an emergency meeting earlier to start the flow of stimulus. The JPY trade balance released this morning narrowed after a tragic report last month. Japan’s merchandise trade deficit in February narrowed from its record pace in the previous month, the Ministry of Finance said Thursday, amid hopes that a weaker yen and a global economic recovery will revive Japan’s long-suffering export industries.

The deficit was slightly smaller than a median forecast of Y876 billion expected in an survey of economists by the Nikkei and Dow Jones Newswires. Exports fell 2.9% on year to Y5.284 trillion, as exports to China plunged 15.8% due in part to the Lunar New Year holiday.

Despite the continued weakness, businesses are upbeat about the outlook on exports following a recent sharp depreciation of the yen against the dollar and the euro, which has made Japanese goods less expensive overseas.

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 March 21, 2013 actual v. forecast

 

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Government Bond Auction

Date Time Country 

Mar 22 16:30 Italy

Mar 25 10:10 Italy

Mar 25 10:30 Germany

Mar 25 11:30 Belgium

Mar 25 15:30 UK

Mar 26 09:10 Holland

Mar 26 10:10 Italy

Mar 26 10:30 UK

Mar 26 17:00 US

Mar 27 10:10 Italy

Mar 27 15:30 Sweden

Mar 27 17:00 US

Mar 28 01:30 Japan

Mar 28 15:30 UK

Mar 28 17:00 US