USD/JPY Fundamental Analysis July 16, 2012, Forecast

By FXEmpire.com

Analysis and Recommendation:

The USD/JPY is range trading in the lower 79 yen range, where the pair has been bound all week. At this writing the USD/JPY is trading at 79.32

The USD remains strong, and risk aversion remains the overall market them, as investors worry about global growth and soaring bond rates in Spain and Italy.

This morning Japanese industrial production reported well under forecast, weakening the JPY. (See below)

The Bank of Japan completed its two day meeting with no changes, disappointing markets but holding to expectations.

Chinese GDP data was released this morning ( see below ) and came in at forecast, relieving investors who were worried that things could be worse, after warning were sounded by the Chinese Premier.

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 July 13, 2012 actual v. forecast

Date	Time	Currency	Importance	Event	Actual	Forecast	Previous
Jul. 13	03:00	CNY	Chinese Fixed Asset Investment (YoY)	20.4%	20.1%	20.1%
03:00	CNY	Chinese GDP (YoY)	7.6%	7.6%	8.1%
03:00	CNY	Chinese Industrial Production (YoY)	9.5%	9.8%	9.6%
03:00	CNY	Chinese Retail Sales (YoY)	13.7%	13.5%	13.8%
05:30	JPY	Industrial Production (MoM)	-3.4%	-3.1%	0.5%

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

Date	Time	Currency	Event	Previous
Jul 16	12:30	USD	Retail Sales m/m	-0.2%
	12:30	USD	Empire State Manufacturing Index	2.3
	14:00	USD	Business Inventories m/m	0.4%
	22:45	NZD	CPI q/q	0.5%
Jul 17	1:30	AUD	New Motor Vehicle Sales m/m	2.4%
	9:15	ALL	G7 Meetings
	12:30	USD	CPI m/m	-0.3%
	13:00	USD	TIC Long-Term Purchases	25.6B
	13:15	USD	Capacity Utilization Rate	79.0%
	13:15	USD	Industrial Production m/m	-0.1%
Jul 18	0:30	AUD	MI Leading Index m/m	0.5%
	12:30	USD	Building Permits	0.78M
	12:30	USD	Housing Starts	0.71M
	14:30	USD	Crude Oil Inventories	-4.7M
Jul 19	1:30	AUD	NAB Quarterly Business Confidence	-1
	12:30	USD	Unemployment Claims
	14:00	USD	Existing Home Sales	4.55M
	14:00	USD	Philly Fed Manufacturing Index	-16.6
Jul 20	1:30	AUD	Import Prices q/q	-1.2%

Click here to read USD/JPY Technical Analysis.

Originally posted here