On Thursday, the Japan Statistics Institution released the export data. It was known that the numbers were increased significantly from 16.1 percent to become 38% year over year in April. 

That data is beyond the expectation of 30.9% and created the highest record since 2010 at the same time. The Japanese export sector recovery is caused by the increase of global demand. 

It is especially for the automotive and electronic goods from that country. The United States and China economy condition is also better. That becomes the main supportive factor too. 

The Detail Export Data

Based on the destination country, the export to China as the largest partner of Japan increased by 33.9% year on year in April. That was led by the export of several machines. 

Those are like the machines to make the chip, hybrid car, and the used copper. Meanwhile, the export to America also grows by 45.1 percent and it is supported by the car demands, spare parts, and the boat engine. 

The increase can be also seen on the Japanese import which is jumping from 5.8% to 12.7% year on year. This number is better than the expectation of 8.8% increase predicted by some parties. 

Generally, the export and import data release yesterday morning was quite impressive so that it brings a good impact on the Trade Balance. The data surplus is reaching 255.3 million yen. 

The Achievement is Beyond the Expextation

The surplus is maybe smaller than its last period which reached 662.2 million yen. However, the recent achievement is able to move beyond the analysts expectation who predicted the 140 million surplus. 

Unfortunately, the increasing new variants of the coronavirus cases in India started to spread in several Asian countries. That condition has a potention to shadowing the Japanese export sector. 

It is especially for some months ahead. Amidst the US dollar bullish sentiment after the release of The Fed meeting result yesterday, the Japanese export-import data can support the Yen movement. 

The USD/JPY pair is now sold at around 109.12 which is not far from the daily open number. The FOMC results released on Thursday morning showed an important information awaited by the people. 

The FOMC Result and Release

Based on the FOMC release, it is known that most of the members are still confirming their commitment to the low interest rate policy. The loose monetary approach is still becoming the best steps. 

That is especially for the US economy nowadays. However, they are also highlighting the issues related to the American inflation. A meeting was held by them last month or in April. 

Some of the members warned tight several factors which support the inflation Increase are maybe unable to be solved quickly. The lack of supply chain and input later will push the inflation. 

That condition can happen even after this year period. The Fed’s official also think that the supply chain issue continues to happen in the half of the industry sector. Maybe, that is harder to solve. 

Tapering Was Discussed in The Meeting

Besides the inflation, the United States economic recovery effort also becomes a discussion in The Fed meeting held last month. There are some points noted during the FOMC meeting. 

Some members were expressed their concern to consider the monetary policy change in line with the strong economy recovery happened in the United States. A plan about tapering was also discussed. 

It seems that the market responded it optimistically. The index of dollar is 0.45% stronger than the daily open level and back to be sold above the level of 90 after the meeting result released. 

However, an experience warned that the result was made before the newest employment data in America was released. Furthermore, the Fed also still think that the inflation is just temporary.