Trade Desk Thoughts - Japanese Current Account

Japanese Current Account Actual 1.56T, Previous 1.29T

Release Explanation: The Japanese current account balance summarizes the flow of goods, services, income, and transfers into and out of Japan. This report is more expansive since it also includes transfer payments and income flows such as foreign aid and returns on investments in foreign assets. The most significant component of the current account is the trade balance figure. A currency will be impacted by this report mainly as a knee-jerk reaction of institutions re-aligning existing positions. The longer term trend will normally take time to reverse and therefore take time to impact currency valuations.

Trade Desk Thoughts: Japans current account has risen from the previous month to 1.56T. The current account measures trade in goods, services, tourism, and investments displays the difference between Japans income from foreign sources against payments of foreign obligations.

Forex Technical Reaction: After bouncing off the 100 day SMA earlier in the day the Japanese Yen is holding just below the neutral LFB pivot point at 107.24.

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