Japan's imports are recovering again.

The Japanese yen remained stable at around 151.4 yen per US dollar, while Finance Minister Chujitsu Suzuki reiterated warnings about the rapidly depreciating currency and closely monitored market movements, reasoning that the yen's current strength does not reflect the true state of the economy. The rapid depreciation of the yen is attributed to expectations that the BOJ will continue its monetary easing policy for some time, despite the cancellation of negative interest rates. Additionally, the US dollar has strengthened rapidly due to the announcement of important economic data from the United States within this week.

Tokyo's basic consumer price index in Japan increased by 2.4% year-on-year in March, slightly down from 2.5% in February. However, the latest inflation figures remain higher than the Bank of Japan's 2% target. Persistent inflation is considered a significant factor supporting the decision to maintain the negative interest rate policy and abolish yield curve control at the latest meeting.

Retail sales in Japan increased by 4.6% year-on-year in February, marking the 24th consecutive month of expansion. This is attributed to continued strong household consumption trends in Japan. When broken down by industry, the highest growth in sales was observed in the pharmaceuticals and cosmetics category, followed by food and beverages.

Japan's trade deficit decreased significantly to 379.358 billion yen in February from 928.908 billion yen in the same month of the previous year, due to a 7.8% year-on-year increase in exports, marking three consecutive months of growth. Exports increased to 8,249.21 billion yen, driven by strong demand from the United States and China, with automotive and supplementary equipment being the major export products, followed by machinery exports due to increased semiconductor demand.

Meanwhile, imports increased by 0.5%, the first increase in 11 months, totaling 8,628.57 billion yen, as domestic demand began to recover slightly. The increase in imports was mainly driven by imports of clothing and accessories, as well as additional imports of machinery, primarily from China and the United States, followed by Vietnam and India.

Techical analysis data (5H)

Resistance: 151.81, 151.93, 152.06

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 151.43 - 151.56 but cannot break the support at 151.56, you may set a TP at approximately 151.93 and SL at around 151.31 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 151.81 - 151.93, you may set a TP at approximately 152.06 and SL at around 151.43 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 151.81 - 151.93 but cannot break the resistance at 151.81, you may set a TP at approximately 151.43 and SL at around 152.06 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 151.43 - 151.56, you may set a TP at approximately 151.31 and SL at around 151.93 or according to your acceptable risk.

Pivot point April 2, 2024 07:07 PM. GMT+7