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.
New to Forex? Watch this video
USDJPY 5 Min: Oct 9, 2013
Chart created byCecilia Sanchez Corona using Marketscope 2.0
— Written by Cecilia Sanchez Corona, DailyFX Research. Feedback can be sent to firstname.lastname@example.org.