USD/JPY Fundamental Analysis October 2, 2014 Forecast

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Updated: Aug 24, 2015, 21:00 UTC

Analysis and Recommendation: The USD/JPY gained 23 points this morning to start off the new month to trade at 109.87 after hitting a high over the 110

USD/JPY Fundamental Analysis October 2, 2014 Forecast

Analysis and Recommendation:

The USD/JPY gained 23 points this morning to start off the new month to trade at 109.87 after hitting a high over the 110 level. The JPY continues to weaken while the US dollar gains momentum. Protests in Hong Kong continue to affect the Asian markets as well as weak – mixed data from Japan. Yesterday’s terrible industrial production print worries traders. This morning Japan released its Tankan Manufacturers Index which printed a bit higher than expected by the non manufactures data offset the climb showing a drop.

The Japanese currency depreciated around 0.2 percent at the end of the month as a result of rise in risk appetite in the market sentiments in early part of the trade which led to decline in demand for the low yielding currency. However, favorable economic data from the country cushioned sharp fall in the currency. The Yen touched an intra-day low of 109.84.

Japan’s Tankan Manufacturing Index rose marginally to 13-mark in Q3 of 2014 as against a rise of 12-level in Q2 of 2014. Tankan Non-Manufacturing Index slipped to 13-level for the quarter ending in June’14 from 19-mark in previous quarter.

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
CNY	Manufacturing PMI	51.1	51.0	51.1
AUD	Retail Sales (MoM)	0.1%	0.4%	0.4%

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
AUD	HIA New Home Sales			-5.7%
AUD	Building Approvals		1.0%	2.5%
AUD	Trade Balance		-0.700B	1.359B
GBP	Construction PMI		63.5	64.0
EUR	Interest Rate Decision		0.05%	0.05%
USD	Initial Jobless Claims		297K	293K
USD	Factory Orders (MoM)		-9.3%	10.5%