JPY enters consolidation. Overview for 21.02.2024

The Japanese yen, paired with the US dollar, has reduced its activity to a minimum. The current USDJPY exchange rate stands at 149.98.

Morning statistics from Japan revealed a decline in the February Reuters Tankan business confidence index, dropping to -1 points from the previous 6 points.

Japanese exports surged in January, increasing by 11.9% y/y, surpassing the forecasted 9.5%. The data showed an improvement over the previous period. However, imports declined by 9.6% y/y, compared to the -6.9% recorded a month earlier. Although the trade balance surplus improved in January, it remained in negative territory.

The yen continues to resist external pressure. Today, it finds support from the local dollar depreciation, allowing the market to pause and determine its further trajectory.