Japanese yen is gaining ground today, heading higher against European currencies following the latest export report, and ahead of the release of the Bank of Japan minutes from the latest meeting.
Right now, Japan is still trying to navigate its economy and figure out what to do next. A recent export report from Japan indicates that exports rose for another month, but that volumes are falling. The policy that Japan has followed for a weak yen has helped a slow recovery, but the economic recovery in Japan has been made slower by the fact that, rather than expanding market share, Japanese companies are instead logging profits.
If the trend continues, some think that Japan will once again have a positive trade balance, rather than a deficit, thanks in part to continued yen weakness and lower oil prices.
The yen has headed higher on this news, gaining ground against its major counterparts. Today, the yen is paring some of its gains ahead of the release of the latest Bank of Japan meeting minutes, but the yen is still higher against European major currencies.
At 10:35 GMT USD/JPY is up to 120.5650 from the open at 120.1180. EUR/JPY is down to 128.6670 from the open at 130.5350. GBP/JPY is down to 179.7040 from the open at 179.8950.
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