Japanese trade balance (adjusted) for January came in at Y 119.4bn vs Y -61.6bn expected, while non-adjusted trade balance stood at Y 645.9bn vs Y -658bn expected and Y 140.3bn last. When breaking down the data, figures were very poor, with exports collapsing -12.9% y/y vs -10.9% expected, and -8.0% last, while imports were -18.0% y/y vs -15.8% expected and -18.0% prior. Exports to Asia fell by 17.8% y/y, to China -17.5% y/y and to the US -5.3%. The slow down in global demand, coupled with a much stronger Yen exchange rate, were the main obstacles for exporters. As per the drop in imports, it also reflects a stall in domestic economic growth. The data strengthens the case for further easing by the BOJ. In a recent note, Nomura sees such outcome as high probability as soon as next March. For more information, read our latest forex news.