Japanese Yen Undecided Following Ho-Hum Trade Data

By Eric Andersen,

THE TAKEAWAY : Merchandise Trade Balance Fell to -¥ 82.6 Billion from ¥ 29.4 Billion > Traders Trader Reaction Muted as Improving Export Data Was Neutralized by a Jump in Imports > USDJPY Traded Sideways.

Data released by the Ministry of Finance andthe Customs Office showed that the merchandise trade balance inFebruary fell to -82.6 billion Yen from 29.4 billion Yen. The figure surpassed the-223.2 billion Yen deficit that analysts expected. Additionally,trade exports rose 5.9 percent on the year, beating the 0.2 percentincrease forecasted and improving upon the 2.7 percent decline theprior year.

The figures painted a rosier than expected picture of an export-dominated Japanese economy and jumped on bears who forecasted a smaller increase in the country’s export sector. Though the data was tempered by a 10.5 percent increase in imports, which passed the 7.0 percent expected, the export figure did show the market that Japanese exporters were not faring as poorly as analysts thought.

Exports performing better than expected detracted from evidence that the Bank of Japan would ramp up its stimulus efforts in the near future. However, unexpectedly high import data suggested the opposite.

After the data was published, traders initiallybought USDJPY, pushing it down from ¥81.296 to ¥81.160,but quickly sold their positions, leading the Yen up to ¥ 81.300. The currency pair continued to tradesideways in the minutes following the release.
DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

Original Article: http://www.dailyfx.com/forex/market_alert/2012/04/19/Japanese_Yen_Undecided_following_Ho-Hum_Trade_Data.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

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