Japanese trade deficit: Largest on record

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  • January trade deficit 1475 billion Yen
  • Imports +10% YoY; exports -9% YoY
  • Exports to China fell by 20% YoY, exports to Asia fell by 14%

The Nikkei has opened over 1.5% higher, following global rather than domestic leads.

EUR/JPY failed to break through the technical resistance mentioned earlier and has fallen back to 105.30


All|Asia Pacific

EUR/JPY|Japanese economy

Sean Lee


  1. I guess the BOJ already knew this figure was headed their way… explains their pro-activeness to weaken the YEN Now even if they are alone in this race to weaken the YEN…

  2. Equities, Gold and Crude Matrix Updated – http://fxmaxsignals.blogspot.com.au/

  3. Personally I don’t think the MoF/BoJ have been intervening in this move. What I think it is is long term players seeing Japan’s new trade deficit as a genuine trigger to start unwinding their long-term long yen positions. Once macro level trade flows stop supporting the position, the easy money has been made.

    We’ll find out in May how much stealth intervention, if any, has been taking place.

  4. As Fxgai said, I dont think that BOJ has been interventing in this move either. What I see in this 30 pips drop after the publishment of Japanese trade deficit is the traditional japanese mind of moving back their overseas investments back to Japan. In long term, I believe that the yen will loose its strength as current data shows that the save-heaven concept of yen is loosing its ground is not any more an alternative to keep the investment safe as Japan is not the same Japan as before.


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