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

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

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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

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Edward Hyon, DailyFX Research Team

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