USD/JPY Fundamental Analysis November 1, 2013 Forecast

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Updated: Aug 22, 2015, 16:00 GMT+00:00

Analysis and Recommendation: The USD/JPY eased to trade at 98.41 down by 12 points after the FOMC shifted their outlook just slightly while keeping

USD/JPY Fundamental Analysis November 1, 2013 Forecast

Analysis and Recommendation:

The USD/JPY eased to trade at 98.41 down by 12 points after the FOMC shifted their outlook just slightly while keeping current policies in place. The JPY has seen some strong data over the past days while traders watch for the results for the Bank of Japan. Prime Minister Abe said he envisions a resurgent Japan taking a more assertive leadership role in Asia to counter China’s power, making Tokyo a representative in the region for countries nervous about Beijing’s military buildup and a possible US pullback. “I’ve realized that Japan is expected to exert leadership not just on the economic front, but also in the field of security in the Asia-Pacific,” Mr Abe told The Wall Street Journal, referring to his meetings with the region’s leaders at a series of summits earlier this month.

And in his ongoing attempt to juggle his desire to enact economic stimulus policies with the need to pay down Japan’s massive debt, the prime minister said he was open to reviewing the second stage of a planned increase in the sales tax in 2015 if the economy weakens after the first hike is implemented next spring. Less than a year after taking office, Mr Abe has already emerged as one of Japan’s most influential prime ministers in decades.

The dollar rallied against the yen after the Federal Reserve said on Wednesday it will keep its stimulus for the economy in place but dropped a reference to tightening financial conditions. Traders bought back the U.S. currency after the widely expected decision, having recently piled on bearish bets on expectations the Fed will not begin cutting back its $85 billion per month asset purchases until next year

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 October 31, 2013 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Oct. 31

NZD

ANZ Business Confidence

53.2%

54.1%

AUD

Building Approvals (MoM)

14.4%

2.7%

-1.6%

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

Date	Time	Currency	Event	Forecast	Previous
Nov. 01	01:30	AUD	PPI (QoQ)		0.1%
	02:00	CNY	Chinese Manufacturing PMI		51.1
	02:45	CNY	Chinese HSBC Manufacturing PMI		50.9
	15:00	USD	ISM Manufacturing Index	55.5	56.2