USD/JPY Forecast Jan. 17, 2012, Fundamental Analysis

Just in:

Japanese household confidence in December improved from the previous month, a Cabinet Office survey showed on Monday, but worries about the economy and wobbly financial markets cloud the outlook.The survey’s sentiment index for general households, which includes views on incomes and jobs, was 38.9 in December, up from 38.1 in November. A reading below 50 suggests consumer pessimism.

Economic Events:

Jan. 16  00:00  JPY  Household Confidence

Household Confidence rates the relative level of overall economic conditions.

A higher than expected reading should be taken as positive/bullish for the JPY, while a lower than expected reading should be taken as negative/bearish for the JPY.

Actual                                  38.90

Forecast                              38.70

Previous                             38.10

Release URL:

Release Date     Actual   Forecast   Previous

Dec 12, 2011       38.10     38.30     38.60

Nov 10, 2011      38.60     39.00     38.60

Oct 11, 2011        38.60     37.20     37.00

Consumer sentiment dropped in November amid the strong yen and the European debt crisis. Reaching 38.1 from 38.6 in October. Employment conditions declined in November lowering household confidence as well. A small rise to 38.9 is forecast.

The yen continued to strengthen against the euro, with the common currency trading at ¥97.13, compared to around ¥97.39 late in North America on Friday. The dollar was at ¥76.80 from ¥76.90 moving in a close range. With US markets closed today, the currency pair should continue in this range unless news comes from the EU.

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