The yen appreciated vis-Ã -vis the U.S. dollar today as the greenback tested bids around the Â¥107.10 level and was capped around the Â¥107.70 level. Technically, the pairâ€™s intraday low was right around the 23.6% retracement of the move from Â¥104.95 to Â¥107.85. Data released in Japan overnight saw the January economy watchersâ€™ index decline for the tenth consecutive month, printing at 31.8 â€“ 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 weekendâ€™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 Â¥13,017.24. Dollar bids are cited around the Â¥105.65/ Â¥104.95 levels. The euro weakened vis-Ã -vis the yen as the single currency tested bids around the Â¥155.05 level and was capped around the Â¥155.95 level. The British pound appreciated vis-Ã -vis the yen as sterling tested offers around the Â¥209.90 level while the Swiss franc came off vis-Ã -vis the yen and tested bids around the Â¥97.00 figure. In Chinese news, the Chinese yuan will begin trading again after the Chinese New Year holiday.
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