USD/JPY flows: Import surprise to the upside

The September Japan trade balance has missed estimate on stronger import. Widely expected a surplus, we are seeing a deficit of 234.6b JPY as import grows stronger by 3.3%. Export towards the U.S. continue to contract on tariff impact while Asia demand remain strong. Despite a headline miss, higher import likely means the domestic demand of Japan stays solid and could point towards steady recovery in consumption amid higher prices.

USD/JPY is trading 0.18% lower at 151.66.