Important Economic Indicators for the JPY.

Gross Domestic Product – This measures the economic activity of Japan. It indicates whether the economy is red hot like lava from Mt. Fuji, or if it’s in the process of harakiri.

Tankan Surveys – These reports survey managers from a broad range of industries, questioning them on their views of the economy. Rising sentiment (scores above 0.0) indicate that Japanese businessmen expect business activity to pick up. Scores below 0.0 suggest otherwise.

Trade Balance – The Japanese economy is heavily export-dependent. Falling export numbers could lead to a decline in economic activity.

Unemployment Rate – This measures the rate of unemployment in Japan. High unemployment could lead to a decline in consumer spending – how would they be able to afford their video games and anime??

Consumer Price Index (CPI) – In the past, the Bank of Japan has shown that they are not afraid to make moves to fight off deflation. If trends show that prices of samurai swords and shurikens continue to fall, it may lead to some surprise moves by the BOJ.

Core Machinery Orders – A large chunk of Japan’s exports are comprised of machinery orders. The rise or fall in core machinery orders could reflect the current status of Japanese trade.

What Moves the JPY

Investment Moves

Due to its low interest rates, the JPY has been considered a good funding source for investments in other countries.

This means that if traders and investors are scared, they will begin to unwind their positions in higher-yielding assets.

Once traders start unwinding these riskier positions (carry trades), they have to cover their short JPY trades by buying back the currency.

The BOJ effect

This doesn’t refer to those announced, scheduled effects. I’m talking about currency intervention!

The BOJ and MoF keep special attention to the FX markets.

With the Japanese economy being very export-dependent, the value of the yen plays a key role in trade.

The BOJ doesn’t want the JPY to appreciate too much because it would make Japanese exports relatively more expensive.

By keeping the value of the JPY lower, they can stimulate demand for Japanese products, which in turn, would benefit the economy.

Learn to Trade

If you’d like to earn extra income trading on the Forex market, consider learning how to currency trade with Forex Smart Trade.   With their super-accurate proprietary trading tools and best-in-the-business, personalized one-on-one training, you’ll be successful.  Check out the Forex Smart Trade webinar.  It shows one of their trader’s trading and how easy, intuitive, and accurate the tools are.  Or try the Forex Smart Trade Introductory Day Trading Trial for just TEN dollars.

Currency trading is very risky. My results are not typical. We provide a trading trial so you can assess the value of our indicators and training for yourself.

www.ForexSmartTrade.com