On Monday, the Japanese Statistic Institution published their export data. Based on that announcement, data is significantly increased by 16.1 percent a year – over – year in March. 

This number is beyond the expectation of 11.6% increase where before it was declined by 4.5% in February. The achievement in March also notes the two digits increase for the first time since 2018.

That is a great record owned by that country. What is the cause? Many analysts thought that it is because a recovery happened on the foreign market sector. This situation can still continue. 

The better condition of Japanese export sector becomes a good sign for the country. Furthermore, it also shows that the Asian market is ready to compete and showing a great recovery.

The Automotive Sector Plays an Important Role

The great situation of the Japanese export sector last month was mostly supported by the automotive distribution such as cars and their components. Some other aspects are also involved. 

Those are like the plastic products and non – iron metal. The export to China was noted increasing by 37.2 percent. Meanwhile, the export to the United States notes the different level. 

It is up to about 4.9%. The goods' delivery to the European area also increases by 2.8%. Overall, the trend is quite even. That makes a lot of parties in Japan satisfied and beneficial for the country’s future. 

The export sector is growing significantly. However, there is a gap between the foreign and domestic demand there. That condition can be seen from the report announced last week. 

The Local Demand Declined Deeply

The report in this case is actually the engine order business. The local demand declined and it reflects that the Japanese economic is still fighting to recover from the pandemic happened since last year. 

The main question for the short – term prospect in Japan is that the export recovery must be able to maintain consistently amidst the virus infection cases in so many countries right now. 

It is known that the vaccination program is not done evenly yet. That may press the demands. In a separate release, the Japan import data increased by 5.7 percent a year – over – year. 

That happened on March. This number is quite far under the achievement in February which was up by 11.8% in that time. However, at least that was still higher than the expert forecast.

Everything is Still Depending on Vaccination 

In the future, the export and import sector in Japan will still depend on the global vaccination program. That must be successful and evenly. However, the export market is affected by many things. 

One of them is the orders from the United States, China, and other regions in Asia. If the global activity can be recovered quickly, it will push the Japanese export. That is so essential. 

Why? It is because that condition may give the positive impact, especially for the domestic economy in that country. Now, that is becoming a strong hope by all parties there and the possibilities are always there. 

Yen Takes The Advantage of Dollar Weakening Momentum 

Mostly, the export and import data release in Japan this morning is quite impressive. That supports the Yen movement against the US dollar. This situation may be happened in the future.

When this news was released, the USD / JPY pair was sold around 108.69 or weakened by 0.04 percent from the daily open price. It shows certain condition faces by Yen in the market. 

Basically, it shows that Yen is now in a good position against the dollar weakened happened since last week. That was when the obligation decreased from its highest level which makes USD isn’t longer interesting.