USD/JPY Forecast Jan. 20, 2012, Fundamental Analysis

USD/JPY Forecast Jan. 20, 2012, Fundamental Analysis
USD/JPY Forecast Jan. 20, 2012, Fundamental Analysis
The USD/JPY pair traded within the same range that dominated the pair’s movements in three weeks, where both the dollar and the Japanese yen are still losing grounds against other majors.

The Japanese yen retreated against the euro and higher-yielding currencies sue to the risk appetite that returned to the financial market.

On the other hand, the greenback maintained its two days decline against its major counterparts, where sings of recovery from the U.S. economy supported confidence between investors which reduced demand for safe haven currencies.

Rumors that the IMF is about to increase its resources by $600 billion in order to help the fight against the debt crisis supported the euro to record more gains against the dollar, while the rally in the Asian stocks helped restore confidence in the global market.

On Friday at 04:30 GMT, the Japanese economy will release the All Industry Activity Index for November, where the prior reading was 0.80% and it’s expected to come at –0.9%.

At 05:00 GMT, Japan will issue the Coincident Index for November, where the previous reading was 90.3; on the other hand the Leading Index for November had a prior reading of 92.9.

The U.S. economy will report the Existing Home Sales for December, where it’s expected with 3.7% rise to 4.65 million from 4.42 million.

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