USD/JPY Fundamental Analysis January 22, 2013 Forecast

USD/JPY Fundamental Analysis January 22, 2013 Forecast
USD/JPY Fundamental Analysis January 22, 2013 Forecast
Analysis and Recommendation:

The USD/JPY fell below the 90 price to trade at 89.66 off by 42pts. Traders cautiously corrected their positions as the yen was pushed down to far on Friday. Also traders booked profits ahead of the Bank of Japan meeting. The Bank of Japan is expected to keep to its plan of stimulating the Japanese economy, which has made the yen weak. All 23 economists in a Bloomberg News survey expect the central bank to expand asset purchases at a two-day meeting that starts today. The Bank of Japan will face a challenge if the yen weakens too far and the trend needs to be stopped, said Koichi Hamada, who’s advising Prime Minister Shinzo Abe on choosing a new central bank chief. Investors are gauging how far Japan may let the currency slide after Abe’s pledges of aggressive fiscal and monetary action triggered a 10 percent decline against the dollar from mid-November.

The yen slipped 0.2 percent to 90.10 per dollar last week in New York and touched 90.21, the weakest since June 2010. Policymakers are working “hard to raise prices and influence the yen,” Hamada said. “If it goes too far, it should be stopped.” He added: “I mean monetary easing should be slowed. At that time, the BOJ will have to consider the timing and speed.”

Markets are worried that the magnitude and the speed that Prime Minister Abe is trying to introduce will upset the economy and cause more problems in the near term than it will help.

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.

Economic Data January 21, 2013 actual v. forecast

Date

Time

 

Currency

 

 

Event

Actual

 

Forecast

 

Previous

 

 

Jan. 21

00:01

 

GBP

 

 

Rightmove House Price Index

0.2%

 

 

 

-3.3% 

 

 

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date

Time

Currency

Event

Forecast

Previous

 Jan. 22

15:00

USD

Existing Home Sales 

5.08M 

5.04M 

Jan. 23

00:30

AUD

CPI (QoQ) 

0.4% 

1.4% 

 

00:30

AUD

Trimmed Mean CPI (QoQ) 

0.7% 

0.7% 

Jan. 24

01:45

CNY

Chinese HSBC Manufacturing

 

51.50 

 

23:30

JPY

Tokyo Core CPI (YoY) 

-0.5% 

-0.6%

Upcoming Government Bond

Date Time Country 

Jan 22 09:10 Holland 

Jan 22 09:30 Spain 

Jan 22 10:30 UK 

Jan 23 10:10 Sweden 

Jan 23 16:30 Italy  

Jan 24 01:30 Japan 

Jan 24 12:00 Norway 

Jan 24 15:30 Sweden 

Jan 24 16:00 US 

Jan 24 16:30 Italy  

Jan 24 18:00 US 

Jan 25 16:30 Italy

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