Trade Balance is the difference between the total value of exports and the total value of imports. A positive trade balance shows the demand of goods of the country on the international market, as well as the fact that the country does not consume all that it produces. A negative trade balance suggests that the country consumes foreign goods together with it own goods.
Because Japan is an export-oriented country, this information gives a critical insight into the development of the country's economy and changes in foreign exchange rates.
A positive trade balance acts as an appreciating weight on the yen.