Release Explanation: This report measures the difference between the total value of exports and the total value of imports. A positive figure indicates a trade surplus while a negative value represents a trade deficit. Because Japan’s economy is highly export-led, trade data can give critical insight into developments in Japan’s economy and changes into foreign exchange rates.
Trade Desk Thoughts:  The trade balance in Japan has plummeted by 45.7 percent from one year earlier. This is after a 35 percent fall seen the previous month and is the sharpest decline seen since 1980. The gross domestic product in Japan has shrunk by an annual 12.7 percent pace in the last quarter. The country has not seen a contraction such as this since 1974. Economists are predicting that the world’s second largest economy may shrink a record 4 percent in the year starting in April, which is faster than the projected decline of 2.9 percent.
Forex Technical Reaction: The Japanese yen has held steady after running over 200 pips the previous day and much like after the CSPI was released yesterday, the pair is trading above the neutral pivot point.