USD/JPY Fundamental Analysis October 16, 2012 Forecast

USD/JPY Fundamental Analysis October 16, 2012 Forecast

Analysis and Recommendation:
The USD/JPY is trading at 78.57 breaking above the lower 78 range that the pair has been stuck in. The U.S. dollar held on to modest gains through the Asian morning Monday, supported by a hint of risk aversion, although trade activity was generally subdued.
Bank of Japan Deputy Governor Hirohide Yamaguchi said on Monday that economic growth in emerging economies is slower but their growth potential is still high.
“Amid the continued low economic growth, the environment surrounding securities markets has been severe and there has recently been concern over a decline in the competitiveness of Japanese securities markets compared with those overseas.”
Yamaguchi didn’t mention the outlook for the BOJ’s monetary policy or Japan’s economy.
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 15, 2012 actual v. forecast

Date				Currency				Event	Actual		Forecast	Previous
Oct. 13				CNY				Chinese Trade Balance	27.70B		20.40B	26.66B
				CNY				Chinese M2 Money Stock	14.8%		13.6%	13.5%
Date			Currency					Event		Actual	Forecast	Previous
Oct. 15			GBP					Rightmove House Price In		3.5%		-0.6%
			AUD					Home Loans (MoM)		1.8%	1.4%	-0.7%
			AUD					New Motor Vehicle Sales (M		4.7%		4.3%
			CNY					Chinese CPI (YoY)		1.9%	1.9%	2.0%
			CNY					Chinese PPI (YoY)		-3.6%	-3.6%	-3.5%
			CNY					Chinese CPI (MoM)		0.3%	0.4%	0.6%
			CNY					Chinese FDI				-3.40%
			JPY					Industrial Production (MoM)		-1.6%	-1.3%	-1.3%
			SGD					Singaporean Retail Sales		3.2%	0.6%	-2.9%