FX.co ★ Fundamental Analysis For December 26, 2012

The keynote of the day is undoubtedly the strong yen further declining on all fronts with the approval of the new Japanese Prime Minister Shinzo Abe by Congress.

Shinzo Abe has already posited several months ago his intention to give rhythm to the Japanese economy, which has not recorded significant growth within the last 11 years. To that end, he warned that he would change the necessary laws, especially those of the Bank of Japan, to inject money into the economy and raise the inflation target to 2%.

The yen opened the session with a gap against the dollar, from Monday's close at 84.82, reaching 85.47, the highest since April 2011. Overcoming 85.50, now stiff resistance, it have taken the pair to its highest value since September 2010, such is the magnitude of the decline of the yen.

Now pay attention to a crisis situation. With the yen and outside the refuge alternative by the above, anchored to the Swiss franc and the euro in a range between 1.20 and 1.22, at least for now, an ounce of gold and the U.S. dollar are again forward in difficult situations.

While not expecting the black days, as some analysts say looking down in history with the name "difficult days", it is to be noted that two of the most sought after coins are now trading currencies, so you will most likely align with the other currency leaders as to what happened four years ago.


At the moment, the remainder of the currency presents no important variations. The Australian dollar continues its downward path and can find the area of 1.03 during this week, perhaps by way of profit taking because it was a good year for the Aussie.