USD/JPY Fundamental Analysis March 7, 2014 Forecast

Analysis and Recommendation:

The USD/JPY soared to trade at 102.65 recovering to trade above its recent trading range gaining 35 points. As geopolitical tensions ease traders are selling the safe haven yen. On Wednesday, the Fed’s Beige Book regional survey of the US economy said severe winter weather dented activity in January and early February, but that the outlook in most areas “remained optimistic”. The findings were eagerly awaited by investors as they mine for clues about future reductions in the Fed’s stimulus programme, which hinges on a firm recovery in the world’s biggest economy. The upbeat Fed reports suggested a continued tapering of the scheme, which is a plus for the dollar. It added that tensions over Russian troop presence in southern Ukraine were “seemingly contained”, with diplomats from Moscow and the United States holding talks to bring an end to the crisis. Calm returned to financial markets on Wednesday after Russian President Vladimir Putin played down the prospect of war.

A senior dealer at a Japanese bank told Dow Jones Newswires that following a halt to slides in emerging market currencies, including the Russian ruble, some traders were shifting their attention to major currencies ahead of a US February jobs report on Friday

The growing queues at Japanese theme parks are both manifestations of Abenomics, the pro-growth policies championed by Shinzo Abe, Japan’s prime minister, that began with easy money and devaluation in the yen. The weaker currency helped fuel a rise in inbound tourism and an increase in Japanese taking “staycations”. As a result, last year Disneyland Tokyo posted a record year for both revenue and visitor numbers. Tourist arrivals to Japan topped 10m for the first time in 2013, comfortably trumping the previous record of 8.6m, while outbound trips dropped by 5.5 per cent year-on-year.

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 6, 2014 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Mar 07 10:03 Sweden

Mar 07 16:30 Italy