By FXEmpire.com

Introduction: This is one of the most popular crosses. The primary reason why EUR/JPY has rallied 11 percent over the past 3.5 months is because of US growth – not many people realize that the price action of EUR/JPY is directly correlated with how the US economy is doing.

Weekly Analysis and Recommendations:

The EUR/JPY ended the week at 96.65 after the pair hit a historical low it looked like it was destined to continue to sink to the bottom, as risk aversion was pushing the JPY to new heights and the euro was tumbling to all time lows.

With a single speech by ECB President Draghi who vowed to save the monetary union, markets completely reversed and did an about face.

Date

Last

Open

High

Low

Change %

Jul 27, 2012

96.65

96.16

97.33

95.65

0.51%

Jul 26, 2012

96.16

94.82

96.43

94.67

1.41%

Jul 25, 2012

94.82

94.23

95.20

94.14

0.63%

Jul 24, 2012

94.23

94.93

95.02

94.12

-0.73%

Jul 23, 2012

94.92

95.17

95.23

94.24

-0.25%

There are still no plans or direct actions only promises, but traders needed some support which they received from Draghi, and then Merkel and Hollande were glad to jump on the band wagon. But the German Central Bank is already trying to stop the ECB plans.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks

Major Economic Events for the week of July 23-27 actual v. forecast for Yen, the Aussie, the Kiwi and USD

Date

Currency

Event

Actual

Forecast

Previous

Jul 23

AUD

PPI q/q

0.5%

0.3%

-0.3%

Jul 24

USD

Flash Manufacturing PMI

51.8

52.1

52.5

NZD

Trade Balance

331M

77M

232M

JPY

Trade Balance

-0.30T

-0.39T

-0.62T

Jul 25

AUD

CB Leading Index m/m

0.4%

-1.3%

AUD

CPI q/q

0.5%

0.6%

0.1%

USD

New Home Sales

350K

372K

382K

USD

Crude Oil Inventories

2.7M

-0.1M

-0.8M

NZD

Official Cash Rate

2.50%

2.50%

2.50%

Jul 26

USD

Core Durable Goods Orders m/m

-1.1%

0.1%

0.8%

USD

Unemployment Claims

353K

381K

388K

USD

Pending Home Sales m/m

-1.4%

0.6%

5.4%

JPY

Tokyo Core CPI y/y

-0.6%

-0.6%

-0.6%

JPY

Retail Sales y/y

0.2%

1.2%

3.6%

Jul 27

USD

Advance GDP q/q

1.5%

1.5%

1.9%

USD

Revised UoM Consumer Sentiment

72.3

72.0

72.0

Historical:

Highest: 156.83 JPY on Sep 22, 2008

Average: 118.28 JPY over this period.

Lowest: 94.12 JPY on July 24, 2012

Economic Highlights of the coming week that affect the AUD, JPY, NZD and USD

Date

Time

Currency

Event

Previous

Jul 30

23:30

JPY

Household Spending y/y

4.0%

Jul 31

1:00

NZD

NBNZ Business Confidence

12.6

1:30

AUD

Building Approvals m/m

27.3%

1:30

AUD

Private Sector Credit m/m

0.5%

1:30

JPY

Average Cash Earnings y/y

-1.1%

12:30

USD

Core PCE Price Index m/m

0.1%

12:30

USD

Employment Cost Index q/q

0.4%

12:30

USD

Personal Spending m/m

0.0%

13:00

USD

S&P/CS Composite-20 HPI y/y

-1.9%

13:45

USD

Chicago PMI

52.9

14:00

USD

CB Consumer Confidence

62.0

Aug 1

1:30

AUD

HPI q/q

-1.1%

12:15

USD

ADP Non-Farm Employment Change

176K

14:00

USD

ISM Manufacturing PMI

49.7

18:15

USD

FOMC Statement

Aug 2

1:30

AUD

Retail Sales m/m

0.5%

1:30

AUD

Trade Balance

-0.29B

12:30

USD

Unemployment Claims

14:00

USD

Factory Orders m/m

0.7%

23:30

AUD

AIG Services Index

48.8

Aug 3

12:30

USD

Non-Farm Employment Change

80K

12:30

USD

Unemployment Rate

8.2%

12:30

USD

Average Hourly Earnings m/m

0.3%

14:00

USD

ISM Non-Manufacturing PMI

52.1

Click here for updated EUR/JPY News.

Originally posted here