Gaitame.com, Compagnie Financière Tradition’s Japanese retail FX subsidiary, has released its volumes for January 2018. The numbers show a sharp rise in volume to approximately 230 billion USD (roughly 25.2 trillion JPY), relative to December numbers of just over 115 billion USD (12.6 trillion JPY).
While the data shows a strong upward movement from recent months, it is important to note that the YoY comparison shows that volumes are still relatively low compared to previous highpoints. In January 2017, Gaitame.com’s volume surpassed $294 billion (32.1 trillion JPY).
December’s numbers were more in line with recent data that has hinted toward a decline in FX numbers. The Japanese FX market has been under the spotlight lately, as investors and companies appeared to be in line with a trend of an industry-wide decline.
Much of the slowdown in Japan’s long-booming FX sphere has been linked to the rise in demand for cryptocurrencies across Asia and globally. However, over the past month, crypto bulls have taken a difficult blow, as markets have been in the red repeatedly, amid regulatory restrictions and government crackdowns.
Number of accounts
Gaitame.com has maintained a steady stream of FX trading accounts, illustrating that the market still has a great deal of interest in Japan. The company’s January report shows a steady increase over the past couple of months, as the total number of accounts reached 450, 774.
However, the rise in account numbers is not indicative of a market recovery, until additional funds enter the market. Perhaps the recent deterioration of the total cryptocurrency market cap will lead some investors to allocate funds toward the more traditional fiat currency trading that the FX market provides, and to partially abandon the higher-risk proposition of cryptocurrency trading.
Japan’s FX market
There is defintitely room for optimism that the scope of the FX industry is beginning to recover in Japan. While the overall sentiment in the region remains relatively negative, some patterns of improvement are beginning to appear.
Earlier this month, Nomura Holding posted its Q1 key data points, which illustrated the company’s growth. Nomura’s net revenue and net income showed improvement during the period, providing positive sentiment around some of Japan’s largest FX and CFD providers.