The Japanese Yen is starting to retreat. Overview for 20.04.2017

After updating its multi weeks’ lows, the USD/JPY pair has been growing for the second day in a row.

The Yen was growing too fast over the last several weeks, so right now it is ready to be corrected. The current quote for the USD/JPY pair is 109.04.

This morning, Japan reported on the country’s Balance of Trade in March. The statistics showed that the indicator fell from ¥813.4B to ¥615B, but the components of the report look much more interesting than the report itself.

So, the Exports expanded by 12.0% y/y, which is twice as much as was expected (6.7% y/y), thus continuing the trend that started in February. The Export to Asian countries increased by 16.3% y/y, to the USA – by 3.5% y/y. The Import to Japan added 15.8% y/y. The Import from China expanded by 10.3% y/y, from other Asian countries – by 10.5% y/y, from the USA – by 16.3% y/y.

Pretty good statistics on the Balance of Trade may provide the Japanese economy with new forward momentums, at least as far as the consumption is concerned. The population is not willing to spend much, but the expansion of the Import may encourage it.

Obviously, for the Yen it’s time to stop growing against the USD, but the demand for the Japanese currency may yet increase before April ends.

RoboForex Analytical Department