USD/JPY Fundamental Analysis July 25, 2012, Forecast

By FXEmpire.com

Analysis and Recommendation:

The USD/JPY is trading this morning at 78.34, after; the government said the Japanese economy faced growing downside risks stemming from the European debt crisis, adding that it was increasingly concerned about the outlook for the nation’s export sector.

In its monthly economic report for July, the Cabinet Office said the overall economy was “on the way to recovery at a moderate pace”.

But a Cabinet Office official added that: “The downward pressure on our economy through negative effects on exports and financial markets is increasing”.

Japan’s Prime Minister Yoshihiko Noda held talks with Bank of Japan governor Masaaki Shirakawa on Monday morning, Jiji Press and other media said.

Shirakawa declined to give details of the talks after the meeting, and said only said the pair had “a frank exchange of opinions”, the reports said.

The MoF also warned speculators away from the JPY threatening intervention.

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 23-24, 2012 actual v. forecast

Date	Time	Currency	Importance	Event	Actual	Forecast	Previous
13:30	USD	Chicago Fed National Activity	-0.15	-0.48
15:00	EUR	Consumer Confidence	-21.6	-20.0	-19.8
Jul. 24	03:30	CNY	Chinese HSBC Manufacturing PMI	49.50	48.20

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

Date	Time	Currency	Event	Previous
Jul 25	0:00	AUD	CB Leading Index m/m	-1.4%
	1:30	AUD	CPI q/q	0.1%
	1:30	AUD	Trimmed Mean CPI q/q	0.3%
	14:00	USD	New Home Sales	369K
	14:30	USD	Crude Oil Inventories
	21:00	NZD	Official Cash Rate	2.50%
	21:00	NZD	RBNZ Rate Statement
Jul 26	0:10	JPY	BOJ Gov Shirakawa Speaks
	12:30	USD	Core Durable Goods Orders m/m	0.7%
	12:30	USD	Unemployment Claims
	14:00	USD	Pending Home Sales m/m	5.9%
	23:30	JPY	Tokyo Core CPI y/y	-0.6%
	23:50	JPY	Retail Sales y/y	3.6%
Jul 27	12:30	USD	Advance GDP q/q	1.9%
	13:55	USD	Revised UoM Consumer Sentiment	72.0

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Originally posted here