USD/JPY Fundamental Analysis November 27, 2012, Forecast

Analysis and Recommendation:

The USD/JPY is trading this morning at 82.27 off by 0.12 cents. Japanese markets were closed for a regional holiday on Friday along with the US celebrating Thanksgiving and Black Friday. There was little activity as the JPY gained some momentum. In what was a hard core reversal earlier last week the JPY soared to recent lows, breaking out of the 79.00 price range and climbing as high as 82.69.

Most of the weakness was based on political uncertainty and an upset in monetary policy and Bank of Japan independence as Shinto Abe looked to be a shoe in to replace Prime Minister Noda. This morning A nationwide poll showed Nippon Ishin no Kai (Japan Restoration Party) chasing the conservative Liberal Democratic Party but leading the ruling Democratic Party of Japan as the top choice for next month’s general election.

The market has reacted favorably to Abe’s reflationary proposals. The yen has fallen against the dollar and stock prices have risen — feats the ruling Democratic Party of Japan couldn’t achieve by intervening in the foreign exchange market with trillions of yen.

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 November 26, 2012 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Nov 27 01:30 Japan 

Nov 27 09:30 Holland 

Nov 27 09:30 Spain 

Nov 27 10:10 Italy  

Nov 27 15:30 UK 

Nov 27 18:00 US 

Nov 28 10:10 Italy  

Nov 28 10:10 Sweden 

Nov 28 10:30 Germany 

Nov 28 18:00 US 

Nov 29 10:10 Italy