USD/JPY Forecast Dec. 21, 2011, Fundamental Analysis

USD/JPY Forecast Dec. 21, 2011, Fundamental Analysis
USD/JPY Forecast Dec. 21, 2011, Fundamental Analysis
The USD/JPY pair opened the day with a downside move where risk aversion retreated over the Korean outlook pushing the Asian stocks to rise and the yen to recover earlier losses versus the dollar.

The BOJ will release its final interest rate decision for 2011, where the BOJ intervention remains an option since FX market with the yen still gaining grounds as a safe haven.

On Wednesday at 23:50 GMT (Tuesday), Japan will issue Merchandise Trade Balance Total for November, where it’s expected to show a deficit of 442.4 billion yen widening from the deficit of 273.8 billion.

The Adjusted Merchandise Trade Balance had a prior reading of –457.9 billion yen, and expected to narrow to -292.8 billion.

At 04:00 GMT, the Bank of Japan will announce its rate decision regarding where the central bank is expected to keep the interest rate steady at 0.10%.

The U.S. economy will release the Existing Home Sales for November at 15:00 GMT and it’s expected to advance 2.4% to 5.09 million from 4.97 million.

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