EUR/JPY Analysis Forecast, May 18, 2015 – Forecast

Analysis and Recommendations (EUR/JPY Forecast):

The EUR/JPY added 20 points to trade at 136.14 as the euro continued to gain steadily trading at a multi month high. Traders are waiting for a speech this morning from Bank of Japan Governor Kuroda in the hopes that he might give a clue in the banks plans for stimulus.   Kuroda stated that the bank won’t hesitate to adjust monetary policy if price trend changes, warrants action to hit 2 pct. Inflation.  Inflation expectations have changed markedly because BoJ presented clear timeframe for hitting price target.

The strength of the euro is impossible for any of its crosses to gain momentum. Mario Draghi said the European Central Bank’s non-standard measures have proven effective, and low interest rates haven’t yet led to financial imbalances.  Unconventional actions “have proven so far to be potent, more so than many observers anticipated,” the ECB president said in a speech in Washington. “While a period of low interest rates will inevitably result in some local misallocation of resources, it does not follow that it has to threaten overall financial stability” and “there is little indication that generalized financial imbalances are emerging,” he said.

The ECB cut its benchmark interest rate to a record-low 0.05 percent in September and has relied on a range of non-standard stimulus to resuscitate the 19-nation economy. Policy makers have provided banks with loans designed to fuel credit supply and started buying government bonds in March, while urging governments to push ahead with structural reforms.

ForexTraq provides in-depth analysis for each currency and commodity we review in forex trading. 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 for EUR/JPY in our  weekly reports and we provide daily updates and outlooks.

eurjpy  chart

Today’s economic releases actual vs. forecast:

Cur. Event
  JPY BoJ Governor Kuroda Speaks

Upcoming Economic Events that you should be monitoring for EUR/JPY in forex trading:

Monday, May 18, 2015

Cur. Event Actual Forecast Previous
  AUD RBA Assist Gov Lowe Speaks
  JPY Industrial Production (MoM) -0.3%
  JPY Tertiary Industry Activity Index 0.3%
  CHF Retail Sales (YoY) (Mar) -2.7%

Government Bond Auctions

Date Time Country

May 18 09:30 Germany Eur 1.5bn 12M (May 2016) Bubills

May 18 10:00 Belgium Auctions OLOs

May 20 09:03 Sweden Holds bond auction

May 21 08:30 Spain Auctions Bonos

May 21 09:03 Sweden Holds bond exchange auction

May 21 09:10 France Auctions BTANs

May 21 09:30 UK Auctions 4.75% 2030 Conventional Gilt

May 21 10:10 France Auctions

May 21 15:30 Italy Announces details of CTZ/BTPei on 26 May

May 21 15:00 US Announces details of 2-year FRN on 27 May, plus 2/5/7 year

May 21 17:00 US Auctions 10-year TIPs

May 22 09:03 Sweden Holds bond exchange auction

May 22 10:00 Norway Details bond auction on 27 May


EUR/JPY analysis forecast


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