By FXEmpire.com

Analysis and Recommendation: (close of Asian session)

The USD/JPY is trading at 80.90. The USD fell to about 81 yen in Tokyo trading Monday, weighed down by position-adjustment sales ahead of monetary policy announcements by the Japanese and U.S. central banks later this week.

The greenback was quoted at 81.05-06 yen, down from 81.60-62 yen at the same time on Friday. The euro stood at 1 dollars.3144-3144, down from 1 dollars.3151-3153, and at 106.54-55 yen, down from 107.33-35 yen.

In the morning, the U.S. currency fell versus the yen due to sales from Japanese exporters ahead of the Golden Week period in Japan from this weekend, traders said.

The dollar weakened also because market players moved to adjust their trading positions in the lead-up to the monetary policy announcements by the U.S. Federal Reserve Board on Wednesday and by the Bank of Japan on Friday, traders added.

Economic Data for April 23 & 24, 2012 actual v. forecast

EUR

French Manufacturing PMI

47.3

47.2

46.7

EUR

German Manufacturing PMI

46.3

49.0

48.4

EUR

Manufacturing PMI

46.0

48.2

47.7

CAD

Wholesale Sales (MoM)

1.6%

-1.0%

-1.1%

Apr. 24

AUD

CPI (QoQ)

0.1%

0.6%

0.0%

AUD

Trimmed Mean CPI (QoQ)

0.3%

0.6%

0.6%

Economic Events scheduled for April 25, 2012 that affect the NZD, AUD, and JPY

13:30 USD Core Durable Goods Orders (MoM) 0.5% 1.8%

Core Durable Goods Orders measures the change in the total value of new orders for long lasting manufactured goods, excluding transportation items. Because aircraft orders are very volatile, the core number gives a better gauge of ordering trends. A higher reading indicates increased manufacturing activity.

13:30 USD Durable Goods Orders (MoM) -1.5% 2.4%

Durable Goods Orders measures the change in the total value of new orders for long lasting manufactured goods, including transportation items.

17:30 USD Interest Rate Decision

Federal Open Market Committee (FOMC) members vote on where to set the rate. Traders watch interest rate changes closely as short-term interest rates are the primary factor in currency valuation

22:00 NZD Interest Rate Decision 2.50% 2.50%

The Reserve Bank of New Zealand (RBNZ) governor decides where to set the rate after consulting senior bank staff and external advisers. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.

Government Bond Auctions (this week)

Apr 25 09:10 Sweden Auctions T-bills

Apr 25 09:30 Germany Eur 3.0bn new Jul 2044 Bund

Apr 25 14:30 Sweden Details nominal bond auction on May 02

Apr 25 17:00 US Auctions 5Y Notes

Apr 26 00:30 Japan Auctions 2Y JGBs

Apr 26 09:10 Italy BOT auction

Apr 26 14:30 Sweden Details I/L bond auction on May 03

Apr 26 17:00 US Auctions 7Y Notes

Apr 27 09:10 Italy BTP/CCTeu auction

Click here to read USD/JPY Technical Analysis.

Originally posted here