USD/JPY Weekly Fundamental Analysis December 10 – 14, 2012, Forecast

Weekly Analysis and Recommendation:

The USD/JPY had a rocky week, closing at 82.50 after opening on Monday at 82.47, a quick look would tell you that there was little activity and that the pair stayed in a close range of 3 pips which would not be true for the yen that traded choppy and sloppy all week. As political uncertainty continues to rise along with the future of the Bank of Japan, the JPY remains weak. Shinto Abe the forerunner in the elections seems to change his economic stance day by day and continues to give an unclear look at exactly what he would do. The Bank of Japan in the meantime continues to inject money into the system trying to help the economy.

As traders repositioned their portfolios to add risk this week, safe haven trades left the market leaving the JPY to tumble. The JPY traded this week from a low of 81.72 to a high of 82.83.

While USDJPY had dropped briefly following the news of an earthquake, it has since retraced its losses, with movement showing congestion around 82.40.  Expectations for BoJ easing continue to rise ahead of the December 20th policy decision – the last of 2012 and first following the upcoming election – as evidenced by the rise in JGB futures to 8 year highs. Market participants are likely expecting an expansion in asset purchases, alongside an extension in the time frame over which purchases will be completed as hinted by BoJ Deputy Governor Nishimura earlier this week

With elections at the end of the week on December 16th the yen will remain volatile all week.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Major Economic Events actual v. forecast for Yen, the Aussie, the Kiwi and USD

Historical: From 2010 to present

Highest: 94.99 on May 05, 2010

Average: 82.77 over this period

Lowest: 75.58 on Oct 31, 2011

 

Economic Highlights of the coming week that affect the AUD, JPY, NZD and USD

Government Bond Auction

Date Time Country 

Dec 10 10:10 Norway 

Dec 10 10:10 Slovakia 

Dec 10 15:30 UK 

Dec 10 16:30 Italy  

Dec 11 09:30 Spain 

Dec 11 10:10 Greece 

Dec 11 10:15 Austria 

Dec 11 10:30 Belgium 

Dec 11 10:30 UK 

Dec 11 18:00 US 

Dec 12 10:10 Italy  

Dec 12 10:10 Sweden 

Dec 12 10:30 Swiss 

Dec 12 16:30 US 

Dec 13 01:30 Japan 

Dec 13 09:30 Spain 

Dec 13 10:10 Italy  

Dec 13 10:30 UK 

Dec 13 16:00 US 

Dec 13 18:00 US 

Dec 14 11:00 Belgium 

Dec 14 15:30 UK