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Japanese Yen Brushes Off Trade Data Before Falling at TSE Open

Japanese Yen Brushes Off Trade Data Before Falling at TSE Open

Daniel Dubrovsky, Contributing Senior Strategist


Talking Points

  • The Yen was little changed against its major peers following Japanese trade balance figures
  • August’s trade balance was ¥243.2 billion versus ¥116.5 billion expected and ¥613.9 billion in July
  • Shortly afterwards, the anti-risk Japanese Yen declined as Nikkei 225 futures rallied at TSE open

Keep an eye on short-term trends for Japanese Yen crosses using the Grid Sight Index (GSI) here.

The Japanese Yen showed a reserved reaction to better than expected trade balance figures. The data showed that the nation’s balance was ¥243.2 billion in August versus ¥116.5 billion expected and ¥613.9 billion in July. In other words, the nation sold more goods abroad than it imported.

Last month, the Bank of Japan announced a major change in its stimulus regime. The central bank will likely follow through with a wait-and-see approach to monitor the impact of the new program. Taking this into consideration, traders may have judged that the trade data had a minor impact on near term policy bets, accounting for the Yen’s tepid reaction.

Shortly after the data crossed the wires, the Tokyo Stock Exchange went online following a positive day on Wall Street. Simultaneously, Nikkei 225 futures rallied alongside other Japanese stocks and equities. This saw the anti-risk Yen declining across the board.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.