By FXEmpire.com

Analysis and Recommendation: (close of Asian session)

The USD/JPY is trading towards Monday’s close at 79.38 showing some weakness from the USD, although that is more attributed to the long holiday in the US, most investors closed positions or withdrew from the markets by mid day trading on Friday. This is a major holiday in the US and most traders end their day early on Friday and are closed on Monday, so volume today will also be very light in all global markets.

Also as we come up to the end of the month, eco data will start to be reported, starting on Tuesday there will be a steady flow of eco information.

Risk aversion remains the theme, as markets continue to worry about the Greek elections and Spanish banks, with no leadership or plan, each press release will have an effect on the markets as demonstrated on Friday with the statements from Prime Minister Monti, which propped up the euro until the plan and statement was disavowed by Chancellor Merkel, who said that Monti was mistaken in his statements.

Japan Finance Minister Azumi reiterated that the yen was acting as a safe haven, as European uncertainties rose so did the yen. Tokyo May core CPI came in at a 20-month low and lower than expected at -0.8%, April National CPI was in line at 0.4%. USD/JPY stayed in a 30 pip range from ?79.82-79.55

The yen rose after the Bank of Japan said it will keep monetary policy easy to spur growth, but will not ease solely to weaken the currency.

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.

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

Date

Time

Currency

Previous

May 29

TBD

AUD

HIA New Home Sales m/m

-9.4%

13:00

USD

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

-3.5%

14:00

USD

CB Consumer Confidence

69.2

22:45

NZD

Building Consents m/m

19.8%

May 30

1:30

AUD

Retail Sales m/m

0.9%

1:30

AUD

Construction Work Done q/q

-4.6%

14:00

USD

Pending Home Sales m/m

4.1%

23:50

JPY

Prelim Industrial Production m/m

1.3%

May 31

1:00

NZD

NBNZ Business Confidence

35.8

1:30

AUD

Building Approvals m/m

7.4%

1:30

AUD

Private Capital Expenditure q/q

-0.3%

1:30

AUD

Private Sector Credit m/m

0.4%

1:30

JPY

Average Cash Earnings y/y

1.3%

12:15

USD

ADP Non-Farm Employment Change

119K

12:30

USD

Prelim GDP q/q

2.2%

12:30

USD

Unemployment Claims

370K

13:45

USD

Chicago PMI

56.2

15:00

USD

Crude Oil Inventories

0.9M

23:50

JPY

Capital Spending q/y

7.6%

Jun 1

12:30

USD

Non-Farm Employment Change

115K

12:30

USD

Unemployment Rate

8.1%

12:30

USD

Core PCE Price Index m/m

0.2%

12:30

USD

Personal Spending m/m

0.3%

14:00

USD

ISM Manufacturing PMI

54.8

Click here for further USD/JPY Forecast.

Originally posted here