USD/JPY Fundamental Analysis October 13, 2014 Forecast

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Updated: Aug 25, 2015, 00:00 UTC

Analysis and Recommendation: The USD/JPY eased by 2 points to trade at 107.81 after the Bank of Japan decision to keep interest rates on hold and the US

USD/JPY Fundamental Analysis October 13, 2014 Forecast

Analysis and Recommendation:

The USD/JPY eased by 2 points to trade at 107.81 after the Bank of Japan decision to keep interest rates on hold and the US dollar continued to decline. The dollar has been pulling back from multiyear highs against the yen, euro and other currencies this week, as investors who had piled into the buck over the past few months–sometimes following the allure of U.S. stocks–have taken profits on a sharp rise that some feel went too far, too quickly.

The dollar and yen rose against the euro and other rival currencies Thursday as fears over slow growth around the world pushed investors into the largest U.S. stock selloff in more than a year.

Two Federal Reserve officials said the U.S. central bank will probably start raising interest rates around the middle of next year, highlighting the policy divergence between the United States and most of its major developed peers.

Fed Vice Chairman Stanley Fischer and San Francisco Federal Reserve Bank President John Williams both suggested that the Fed should start to raise rates by mid-2015.

Debt markets, however, have recently been pushing out the timing of a likely Fed rate increase further into 2015 amid worries about slowing global growth and a general lack of inflationary pressure in the major economies.

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:

Cur.	Event	Actual	Forecast	Previous
JPY	Monetary Meeting
JPY	Tertiary Industry	-0.1%	0.2%	-0.3%
AUD	Home Loans	-0.9%	0.1%	0.3%

Upcoming Economic Events that you should be monitoring:

Cur.	Imp.	Event	Actual	Forecast	Previous
	Holiday	Japan – Health-Sports Day
	Holiday	Canada – Thanksgiving Day
NZD		FPI (MoM) (Sep)			0.3%
CNY		Exports (YoY) (Sep)			9.4%
CNY		Imports (YoY) (Sep)			-2.4%
CNY		Trade Balance (Sep)			49.83B