USD/JPY Fundamental Analysis November 25, 2014 Forecast

Analysis and Recommendation:

The USD/JPY added 6 points to remain near its record highs. The yen is trading at 117.85 with the Japanese markets closed for a local holiday. The yen has rallied against the dollar in the wake of a warning from the Japanese finance minister that the pace of the yen’s depreciation was sharper than desired.

“Over the past week, the yen-dollar rate has weakened too fast — that’s clear,” Bloomberg reports Taro Aso as having said in Tokyo. “It’s up to the market to set the currency rate and it’s not something where we intervene. Sudden currency changes aren’t welcome, whether it’s up or down.”

Wednesday’s rise in the dollar above the 118 yen mark was the first time in seven years it has reached the 118 level, after climbing about 10 yen in a month. According to Bloomberg, the decline represented sharpest five-week drop in the yen since 1995.

The dollar dropped against currencies tied to large commodity exporters after China moved to stimulate its economy, spurring hopes for renewed demand in raw materials. The dollar weakened against the yen Friday after Finance Minister Taro Aso expressed concern over rapid depreciation in the Japanese currency. Japan has been making efforts to increase inflation toward a 2% target, as well as lift growth, with little success. The greenback slid 0.4% to ¥117.78.

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 actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Government Bond Auction

Date Time Country Auction

Nov 21 16:30 Italy Announces details of BOT auction on Nov 26