Previously, I examined USD/JPY in terms of valuation, carry, and momentum. We should also examine the U.S. trade deficit with Japan. The attached chart shows annual trade deficits with Japan starting from 1985. Last year’s trade deficit with Japan of $44.8 billion was the smallest since 1991 ($43.4 billion).
YCS closed at 20.07 yesterday. I recommended it at 19.31 on March 3, 2010.