USD/JPY Fundamental Analysis October 29, 2014 Forecast

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Updated: Aug 25, 2015, 03:00 UTC

Analysis and Recommendation: The USD/JPY is holding at 107.83 with the US dollar gaining 2 points as a positive retail sales report from Japan this

USD/JPY Fundamental Analysis October 29, 2014 Forecast

Analysis and Recommendation:

The USD/JPY is holding at 107.83 with the US dollar gaining 2 points as a positive retail sales report from Japan this morning seemed to give little support to the yen. Traders are focused on the FOMC statement due tomorrow and the Bank of Japan meeting later this week. Analysts have said the performance of Japan’s economy over the third quarter will likely determine whether the government proceeds with a second tax hike to 10 percent in 2015. The Bank of Japan will consider moderating its language on inflation in a report this week to take account of the impact of lower oil prices, according to people familiar with central bank’s discussions.

The central bank may tone down or abandon its assessment that consumer-price gains are likely to “follow a rising trend again from the second half of this fiscal year,” according to the people who asked not to be named because the talks were private. Some officials see the potential for the BOJ to cut its inflation projections for the year through March and the following fiscal year, the people said.

The dollar fell for a second day versus major peers on speculation the Federal Reserve will maintain record-low interest rates for an extended period after it cuts its bond-buying program. The U.S. currency extended losses as data showed contracts to purchase existing homes rose less than forecast, a day before the central bank begins a two-day policy meeting.

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		Retail Sales (YoY) (Sep)	2.3%	0.6%	1.2%

Upcoming Economic Events that you should be monitoring:

Time	Cur.	Imp.	Event	Actual	Forecast	Previous
	JPY		Industrial Production		2.2%	-1.9%
	NZD		Business Confidence			13.4%
	CAD		RMPI (MoM) (Sep)		-1.0%	-2.2%
	USD		FOMC Statement
	USD		Fed Funds Target Rate		0.25%	0.25%