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Forex - USD/JPY slightly lower following trade deficit news

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Investing.com - The Japanese yen is trading modestly lower against the U.S. dollar in Thursday's Asian session following some downbeat trade deficit news out of Asia's second-largest economy.

In Asian trading Thursday, USD/JPY is lower by 0.06% at 95.96. The pair is likely to find support at 95.80 and resistance at 96.

Earlier today, Japan's finance ministry said shipments slipped 2.9% in February, far worse than 1.7% decreased economists expected. Imports climbed nearly 12% creating an overall trade deficit of USD8.1 billion.

While the yen is down 10% against the greenback on a year-to-date basis, economists noted it takes some time for the slumping currency to have a positive impact on Japan's trade situation. The February trade deficit was the eighth consecutive for Japan, marking the country's worst such string in more than three decades.

Japan's exports to China slipped 15.8% last month, a drop attributed to the Lunar New Year, but ongoing weakness in the euro zone is also hampering Japanese exporters. Japan, the world's third-largest economy behind the U.S. and China, saw its imports to the European Union slide 9.6% in February.

On Monday, Goldman Sachs boosted its forecast for Japan's 2013 GDP growth to 2.3% from 2.1%, noting the weaker yen is often quickly seen in imports, but that benefits to exporters take longer to materialize.

Meanwhile, there is chatter that new Bank of Japan Governor Haruhiko Kuroda may make remarks later today about regarding quickly reaching Japan's desired 2% rate of inflation.

Elsewhere, EUR/JPY is up 0.07% at 124.30 while AUD/JPY is lower by 0.02% at 99.64. NZD/JPY is soaring 0.54% to 79.38 on the back of a strong-than-expected fourth-quarter GDP report out of New Zealand.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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