DailyFX.com -

Talking Point:

  • Japan Machine Tool Orders (YoY): 34.2% Actual Vs 24.1% Prior.
  • USD/JPY Saw A Relatively Muted Reaction To The Release.
  • Near-Term Support Rests At 101.32, Resistance At 102.25

Want to trade with proprietary strategies developed by FXCM? Find out how here.

Japan Machine Tool Orders, which tracks trends in machine tool orders placed by major manufacturers in Japan, increased by 34.2 percent year-on-year for the month of June. The leading indicator of business capital spending and a gauge for stronger business confidence accelerated relative to the prior month’s reading of 24.1 percent. It marks the ninth consecutive reading in positive territory.

Ahead of the data, USD/JPY was trading lower for the session as forex traders which may be due to broad-based US Dollar weakness. This is due to a modest declines in the market’s outlook for the timing and intensity of the FOMC’s return to a hawkish form says DailyFX Chief Currency Strategist John Kicklighter. Following the data release, the Yen had a moderately muted reaction against the US Dollar to trade at 101.595.

When considering technical analysis, DailyFX Currency Strategist Ilya Spivak coveys through his Daily Classical Article that the US Dollar remains locked in a choppy range above the 101.00 level against the Japanese Yen. He mentions near-term support rests at 101.32 and resistance at 102.25, while remaining on the sidelines for a breakout from a triangle formation.

USD/JPY 5 Minute Chart

USD/JPY Overlooks Japan Machine Tool Orders Ahead Of FOMC Minutes

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

New to FX? START HERE!

Edward Hyon, DailyFX Research Team

Keep up to date on event risk with DailyFX Calendar

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Hot Definitions
  1. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  2. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  3. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  4. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  5. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center