Japan's Trade Balance at New 12-Year Low

Data released Sunday night  revealed a big drop in Japan's Trade Balance...in fact, it's the lowest reading since January 2000 and double the loss made the prior month. Whether the Bank of Japan will provide additional monetary easing/stimulus remains to be seen.

Japan's Nikkei Index has been fluctuating wildly within a wide range since it dropped below 10000 after the earthquake in March of 2011. Two attempts to regain and hold above that level have failed, and price remains subdued within a smaller range and in between the 50 and 200 smas, as shown on the Daily chart below. The 50 sma is still below the 200 sma in a bearish "Death Cross" formation, and price action is under that bearish influence.