USD/JPY Fundamental Analysis October 7, 2014 Forecast

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Updated: Aug 24, 2015, 23:00 UTC

Analysis and Recommendation: The USD/JPY eased by 16 points as the US dollar dipped and corrected after Friday’s climb as the pair traded at 109.62 as

USD/JPY Fundamental Analysis October 7, 2014 Forecast

Analysis and Recommendation:

The USD/JPY eased by 16 points as the US dollar dipped and corrected after Friday’s climb as the pair traded at 109.62 as traders watch the upcoming Bank of Japan policy meeting with a decision due on Tuesday. BoJ governor Haruhiko Kuroda defended the central bank’s aggressive monetary-easing tactic for its impact on the yen, arguing that the weaker currency is good for the economy on balance and also that the BOJ’s 2 per cent annual inflation target is achievable in “around two years”.

He was facing questions in parliament about the BOJ’s controversial monetary-easing strategy, which has been criticized for forcing up import costs without triggering an attendant rise in exports and also for eroding real incomes.

Mr Kuroda’s comments came at the end of a week in which the yen had plunged to a six-year low of slightly below 110 against the US dollar and to a two-year low against the euro, although it has since regained a little strength.

Kudora’s comments appeared to oppose those of Economy Minister Akira Amari, who warned on Wednesday that excessive yen moves were undesirable for the economy, after the currency hit a six-year low of 110.09 against the dollar. Kuroda said he remained committed to achieving the BOJ’s 2 percent inflation target at the earliest possible stage, but again signaled no imminent need to ease monetary policy further.

He remained bullish on prices, arguing weaker energy prices were behind the slowdown in inflation but expects it will pick up pace again from the latter half of the current fiscal year, underpinned by a tightening labor market.

The BOJ has stood pat on monetary policy since deploying an intense burst of stimulus in April last year, when it pledged to achieve its 2 percent inflation in roughly two years via aggressive asset purchases.

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
AUD	MI Inflation Gauge	0.1%		0.0%
AUD	ANZ Internet Job Ads	1.1%		1.4%
AUD	ANZ Job Advertisements	0.9%		1.6%
AUD	ANZ Newspaper Job Ads	-3.5%		1.8%

Upcoming Economic Events that you should be monitoring:

Currency

JPY	Monetary Policy Statement
AUD	Cash Rate
AUD	RBA Rate Statement
JPY	BOJ Press Conference
CHF	Foreign Currency Reserves
GBP	Halifax HPI m/m
CHF	CPI m/m
CHF	Retail Sales y/y
GBP	Manufacturing Production m/m
GBP	BOE Credit Conditions Survey
CAD	Building Permits m/m
GBP	NIESR GDP Estimate
USD	JOLTS Job Openings