forex USD/JPY- Japan’s Declining Exports in September Weighed on the Yen

[Anzo Lim 0]

Data from Japan’s Finance Ministry on Monday (October 21^st ) suggests Japan’s exports in September was down 5.2% from a year earlier. The figure has been falling for 10 months in a row, the longest consistent drop since the 14-month-decline from October, 2015 to November, 2016.

 

Imports in September fell by 1.5%, and the total trade deficit is about 12.3 billion yen (1.1 billion in USD). Japan’s deficit for the past 2 quarters (April-September) totaled 848 billion yen, which can mainly be attributed to falling exports in the manufacturing sector, such as auto parts exports to China and semiconductors to South Korea accounts.

 

The Finance Ministry noted that economic slowdown in China can have negative impact on Japan. The bank of Japan governor Haruhiko Kuroda said that the central bank will continue its easing monetary policy to revive the economy, while paying close attention to impact of monetary policies on the financial system. Declining September exports will weigh down on the yen to a certain degree, and USD/JPY will likely drop to around 109.50.

 

 

Daily pivot points for USD/JPY: 108.44--108.54

S1: 108.27        R1: 108.61

S2: 108.15        R2: 108.83

 

Source: WikiFX App