USD/JPY Fundamental Analysis – November 20, 2015 – Forecast

Analysis and Recommendation:

The USD/JPY gave up 42 points as the greenback eased off of Fed induced highs and safe haven traders slowed. The pair is trading at 123.22 well above its average range over the last 90 days. The Bank of Japan maintained its current pace of monetary stimulus on Thursday, clinging to hopes that an economic recovery is in sight despite soft domestic capital expenditure and challenging global business conditions.

The central bank also kept intact its assessment that while exports and output were feeling the pain from weak emerging market demand, Japan’s economy continued to recover moderately.

“Japan’s economy is expected to continue recovering moderately” with capital expenditure remaining on a moderate rising trend, the central bank said in a statement announcing the policy decision, which was made by a 8-1 vote.

Within the policy statement, the board noted that the Japanese economy has continued to recovery modestly, although acknowledged that exports and production had been affected by the slowdown in emerging economies.

The statement came despite the Japanese economy contracting 0.8% in the September quarter, marking a technical recession following a similarly shallow decline in Q2.

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.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Friday, November 20, 2015

Government Bond Auctions

Date Time Country

Nov 19 10:30 Spain 0.25% Apr 2018 Bono, 1.15% Jul 2020 Bono, 5.4% Jan 2023

Nov 19 10:50 France Eur 7-8bn; 4.25% Oct 2018 OAT, 0.25% Nov 2020 OAT, 2.25%

Nov 19 11:50 France Eur 1-1.5bn; 0.25% Jul 2024, 1.85% Jul 2027, 3.15% Jul 2032

Nov 19 N/A US Holds 10-year TIPS auction

Nov 20 16:30 Italy Announces details of CTZ/BTPei on 25 Nov

Nov 23 12:00 Belgium Auctions OLOs

Nov 23 N/A US Holds 2-year note auction

Nov 24 17:30 Italy Announces details of BTPs/CCTeu on 27 Nov

Nov 24 N/A Holland Eur 1.0-2.0bn 0.25% Jul 2025 DSL

Nov 24 N/A US Holds 5-year note auction

Nov 25 11:03 Sweden Holds bond auction

Nov 25 11:10 Italy Auctions CTZ/BTPei

Nov 25 11:30 Germany Eur 3bn 1.0% Aug 2025 Bund

Nov 25 N/A US Holds 2-year FRN auction

Nov 25 N/A US Holds 7-year note auction

Nov 26 11:03 Sweden Holds bond auction

Nov 27 11:03 Sweden Holds bond auction

Nov 27 11:10 Italy Auctions BTPs/CCTeus