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Yen Ignores Weak Machine Tool Orders Data, Tracks Nikkei 225

Yen Ignores Weak Machine Tool Orders Data, Tracks Nikkei 225

2013-10-09 08:59:00
Cecilia Sanchez Corona,
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Talking Points:

  • Japan’s Machine Tool Orders declined 6.3 percent year-on-year
  • Japanese Yen disregarded the outcome, followed Nikkei 225
  • USD/JPY testing first resistance level of 97.23

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Japan’s Machine Tool Orders – a leading indicator of capital spending trends – declined 6.3 percent year-on-year in September. While the outcome marked a larger drawdown than the -1.7 percent drop seen in August, the broadly improving trend traced out since December remains in place.

The Japanese Yen broadly disregarded the outcome considering its limited implications for Bank of Japan monetary policy. Instead, the currency once again took its cues from Japanese stock performance. The benchmark Nikkei 225 stock index rose over 1 percent amid a broad-based recovery in risk appetite in Asian trade, pushing the safe-haven Yen downward. The correlation between the USDJPY and the Nikkei is now 0.54 (on 20-day percent change studies)

USDJPY is now testing below the first layer of daily pivot point resistance at 97.23, with prices eyeing subsequent levels at 97.58 and 98.26. On the downside, the first pivot support level is seen at 96.55, followed by 96.22 and 95.54.

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USDJPY 5 Min: Oct 9, 2013

Yen_Ignores_Weak_Machine_Tool_Orders_Tracks_Nikkei_225_body_Picture_1.png, Yen Ignores Weak Machine Tool Orders Data, Tracks Nikkei 225

Chart created byCecilia Sanchez Corona using Marketscope 2.0

-- Written by Cecilia Sanchez Corona, DailyFX Research. Feedback can be sent to instructor@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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