Japan Recorded Big Drop in March Exports

Latest statistics show Japans exports this March recorded the greatest decline in nearly 4 years. Exports to the US, including automotive, saw the heaviest slump since 2011, and due to business activities crushed by the pandemic, global economy may sink into the worst recession since the Great Depression in 1930s.

Data released by Japans Finance Ministry indicates a 11.7% decline year-on-year in March exports, further fueling concerns that Japan may sink into a recession.

In terms of regions, Japans exports to China, its largest trade partner, dropped 8.7% year-on-year this March with falling outputs in auto parts, organic compounds and chip manufacturing facilities. Due to falling demands in automotive, aircraft engines and construction and mining equipment, March exports to the US were down 16.5% year on year, the largest decline since April, 2011.

USD/JPY daily pivot points: 107.65--107.71

S1 107.42 R1 107.88

S2 107.23 R2 108.13