EUR/JPY Weekly Fundamental Analysis January 21 -25, 2013, Forecast

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Posted January 19, 2013 8:51 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size       | Add a comment EUR/JPY Weekly Fundamental Analysis January 21 -25, 2013, Forecast EUR/JPY Weekly Fundamental Analysis January 21 -25, 2013, Forecast

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 continued to trade well above the 1.33 level against the USD as politicians and lawmakers along with central bankers continued to talk up the economy and recovery in the EU. Although data has had very little to do or support to new forecasts and positive words, it seems that positive thoughts will translate to positive data. Across the world in Japan, recovery in Japan is hopefully going to be jump started with huge amounts of monetary stimulus and infrastructure projects. The EUR/JPY climbed over 1.20 on Thursday but closed the week slightly below as traders moved away from the euro after disappointing consumer data in the US moved traders back to risk off mode.

The euro gained versus the majority of its most-traded peers as Spain’s borrowing costs fell at a 4.5 billion-euro ($6 billion) sale of bonds, underscoring increased confidence in European debt markets. The Swiss franc dropped. The Japanese currency continued its longest stretch of weekly losses since 1989 amid bets the BOJ will decide to conduct open-ended asset buying to stoke inflation. The central bank meets Jan. 21-22.

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 January 14 – 18 actual v. forecast for Yen, the Aussie, the Kiwi and USD

NY Empire State Manufacturing Index 

TIC Net Long-Term Transactions 

Tertiary Industry Activity Index (MoM) 

Philadelphia Fed Manufacturing Index 

Chinese Fixed Asset Investment (YoY) 

Chinese Industrial Production (YoY) 

Historical: From 2010 to Present

Highest: 134.38 JPY on Jan 11, 2010

Average: 111.13 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

Upcoming Government Bond

Date Time Country 

Jan 21 10:00 Slovakia 

Jan 22 09:10 Holland 

Jan 22 09:30 Spain 

Jan 22 10:30 UK 

Jan 23 10:10 Sweden 

Jan 23 16:30 Italy  

Jan 24 01:30 Japan 

Jan 24 12:00 Norway 

Jan 24 15:30 Sweden 

Jan 24 16:00 US 

Jan 24 16:30 Italy  

Jan 24 18:00 US 

Jan 25 16:30 Italy