Japan Machine Tool Orders Disappoint Earlier Estimate
THE TAKEAWAY: Japan machine tool decline 26.4% from January 2012, slightly worse than initial estimate -> Japan saw three straight quarters of decline last year -> Yen trading unchanged
The decline in Japanese machine tool orders was revised lower in a final estimate by the Machine Tool Builders’ Association. The orders declined 26.4% from January 2012, which was worse than an earlier estimate of -26.1%, but slightly better than the 3-year record decline seen at -27.5% in December.
The Japanese economy saw three straight quarters of contraction in 2012 ending with Q4. The government raised its economic assessment in January to 1% growth in the fiscal year ending next month, and then 2.5% growth for fiscal 2013. Signs of improvement in the Japanese economy are Yen positive.
However, Yen trading did not significantly react to the release, as Forex traders remain focused on the BoJ’s bold monetary policy. USD/JPY is trading slightly below 94.00 at the time of this writing, and resistance might be seen at a near 3-year high set last week at 94.45. Support may continue to be provided around 92.50.
USDJPY4-Hour: February 18, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.