Japan's current account deficit reached the local high in January 2014. The deficit was equal to ¥1589bn during the reporting period. Apparently, the Japanese Yen keeps losing its value against other major currencies, including the US Dollar.
In particular, last year, the Japanese currency lost 16.6% and 19.4% of its value against the US Dollar and the common European currency respectively.
The major reason for this widening deficit is considered to be Japan's bigger export of energy carriers. All in all, the Japanese import increased by 30,3% up to ¥7862bn as compared to the same period last year. At the same time, the country's export reached only ¥5515bn, thereby widening the deficit.
On the one hand, a cheaper yen favors Japanese exporters by making their products and services cheaper and more attractive abroad. On the other hand, Japan has to import energy carriers at a higher price due to a cheaper national currency.
Meanwhile, Masterforex-V Academy reports about a rally initiated by USDJPY. This actually means that the Japanese Yen is losing value against its American counterpart.
A further rally may encounter resistance around 104.10, 104.40, 104.88 as well as the MF pivot located at 104.91. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 101.19 (as shown below).
