Japan Current Account

The question is asking me to predict the rate of exchange SPOT 1 year in the future if Japan had a current account surplus and the U.S. is a current account deficit. I would say that the yen should appreciate in value on this basis, but I do not really understand why this would happen.

If a country exports more than imports .. the trade balance surplus. Japan say this, it exports more in Japan means the sale of goods abroad, if people outside Japan want them, they must pay in yen in Japan .. This will increase demand ... Yen whenever demand increases, what happens Price (request economy and the supply curve) ... price increases. Thus, the yen price increase, in other words, it will become more costly in terms of other currencies.

Similarly, the United States have a deficit, means that the country imports more than it exports. Import means buying goods from another country u, u have to pay. Let's say the U.S. imports of products from Japan, the United States may pay the amount in dollars in Japan?? No, it has to first buy Yen. how the United States? they will give you dollars to Govt Japan, thus increasing the supply of dollars in other countries ... to the United States provides more money, providing a higher dollar, which reduces its price (same rule of supply and demand economy )....

We see that, when the deficit is there in the economy, the value of the currency will fall. Whereas, if there is surplus, the value of money increases.

it may be useful