The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥107.10 level and was capped around the ¥107.70 level. Technically, the pair’s intraday low was right around the 23.6% retracement of the move from ¥104.95 to ¥107.85. Data released in Japan overnight saw the January economy watchers’ index decline for the tenth consecutive month, printing at 31.8 – the lowest level since December 2001. Also, December core private sector machinery orders were off 3.2% m/m, the second straight monthly decline. Traders will carefully monitor this weekend’s G7 meeting in Tokyo to see if policymakers deviate from their standard excessive volatility is undesirable mantra. It was also reported that the January money supply growth was steady at 2.1% and January bank lending was up +0.5% y/y. The Nikkei 225 stock index lost 1.44% to close at ¥13,017.24. Dollar bids are cited around the ¥105.65/ ¥104.95 levels. The euro weakened vis-à-vis the yen as the single currency tested bids around the ¥155.05 level and was capped around the ¥155.95 level. The British pound appreciated vis-à-vis the yen as sterling tested offers around the ¥209.90 level while the Swiss franc came off vis-à-vis the yen and tested bids around the ¥97.00 figure. In Chinese news, the Chinese yuan will begin trading again after the Chinese New Year holiday.