USDJPY – Down
USDJPY trading plan:
Japan’s current account surplus fell sharply in December after a record rise the prior month, finance ministry data showed, highlighting the impact of persistent trade deficits and a weak yen on the country’s once-solid balance of payments. The yen’s slide over the past year has bumped up the cost of imports, including commodities and oil. Japan’s current account surpluses have long been regarded as a sign of export might and a source of confidence in the safe-haven yen, but the account has occasionally fallen into the red on a monthly basis in recent years partly as a weaker yen has boosted the costs of imports. While the cost of imports rise as the yen weakens, the attendant boost to exports that become cheaper to foreign buyers has not been as great due to firms shifting production abroad – a consequence of a previously strong yen making exports pricey.
Investment idea: buy 130.65 and take profit 131.35.
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