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Forex pairs in this Article » USD/JPY (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that Yen’s safe haven appeals continues to be eroded.

Key Quotes

"The safe haven appeal of the yen has been eroded by aggressive BoJ monetary easing, and by the deterioration in Japan’s current account balance. It was reported overnight that Japan’s trade deficit on a seasonally adjusted basis continued to remain elevated at JPY1.15 trillion in December narrowing only modestly from JPY1.29 trillion in November."

"Import growth is likely being boosted by a pick up in demand ahead of the upcoming sales tax hike in April. It is helping to offset the positive impact from strengthening real export growth with net trade likely to be a modest drag on real GDP growth in Q4. It also appears likely that Japan will record a quarterly current account deficit in Q4 which will help to dampen yen upside potential in the near-term."
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