Japan is reported to see its balance of payments increasing its deficit since the trade balance deficit is widening faster than Japan is benefiting from foreign investments. The deficit seem to hit the record. The figures are 638,6 billion yens without a glance at seasonality.
It seems like economists have failed to predict the data once again. Apparently, they expected a tighter deficit. By the way, the deficit has already been growing for 3 consecutive months. All in all, 2013 saw a surplus equal to 3310 billion yens, which is the lowest surplus since 1985.
The Japanese authorities are tyring to improve the situation at the expense of more extensive foreing trade since Japanese exports are not enough to cover the gap amid sharply growing imports.
At the same time, the Bank of Japan is reported to continue its monetary stimulation even if the rate of inflation reaches 2%. The regulator is determined to make sure that inflation rate is stable enough to avoid declining in the near future. As a result, a weaker national currency will be influencing the country's balance of payments and trade balance since there will be no strengthening of the Japanese Yen under such circumstances.
Meanwhile, USD/JPY is still forming a downtrend, even though the price is currently trying to recover a bit against the recent downswing, Masterforex-V Academy reports. The closest levels of support are 100,74 and the long-term MF sloping channel. A break above 105,43 will resume the previous rally.
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