Japan's trade deficit increased to 0.78 trillion. yen in March, against the forecast 0.54 trillion and 0.04 trillion in February. At the same time, we see that in April the economy watchers sentiment in Japan fell to 41.6, against 57.9 in March. Such a sharp decrease is due to an increase in the sales tax from 5% to 8%, which led to a drop in sales in April, but increased them in March.
Further movement of the Japanese yen and the stock market in Japan will depend on the data for GDP growth in Japan in the first quarter of 2014, and the speech of the head of the Bank of Japan Haruhiko Kuroda, which will take place on Thursday.
We maintain a long-term negative outlook for the Japanese yen due to loose monetary policy of the Bank of Japan, weak economic indicators and the reduction of quantitative easing in the U.S.
Wish you the profits!
FXFINPRO Capital Analytical department.