Yen Bounces from Multi-Year Lows

The Japanese yen bounced from multi-year lows today as the nation’s current account demonstrated a surplus that was about two times as big as forecasters have predicted. The currency managed to rally even as Japan’s economy continued to decline.
Japan’s current account had an excess of ¥0.95 trillion in October. This is compared to the median forecast of ¥0.46 trillion. Meanwhile, gross domestic product shrank 0.5 percent in the second quarter of 2014 after declining 0.4 percent in the previous three months. Market participants counted on just a small decline by 0.1 percent.
With mixed data, the yen had little help from fundamentals. Yet the currency rallied nevertheless as traders considered the recent huge slump of the yen was excessive.
USD/JPY fell from 121.58 to 102.78 as of 21:33 GMT today. EUR/JPY declined 149.36 to 148.65 while GBP/JPY retreated 189.30 to 188.97.

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