The yen appreciated sharply vis-à-vis the U.S. dollar today as the greenback tested bids around the Â¥92.15 level and was capped around the Â¥94.85 level. The pair continues to weaken on expectations that second quarter corporate earnings reports will be weaker-than-expected and lead some Japanese accounts to reduce their exposure to U.S. equities. Today€™s low represents the pair€™s lowest print since 18 February. The yen shook offer weaker-than-expected May core private-sector machinery orders that fell 3.0% m/m to a record low value. Also, bank lending slowed last month to +1.8% from a record pace and June corporate bankruptcies were up more than 18% m/m and 7.4% y/y. Collectively, today€™s data does not bode well for capital and consumer spending in Japan€™s domestic economy, and may be at odds with the government€™s and Bank of Japan€™s recent upgrades to their economic assessment. The big talk involving BoJ is that officials could extend their emergency financial programs to support the economy when its Policy Board convenes on 14-15 July. Some dealers believe an indication that BoJ will extend its policies past the September deadline will take focus away from policies€™ exit strategies and lead to a weaker yen. One wildcard that remains is Japan€™s elections in mid-September, especially as Prime Minister Aso has little political support and no clear mandate. BoJ€™s consumer sentiment diffusion index printed at -81.4 for the April € June period, its first improvement in nearly two years. Another component of the survey revealed consumers€™ inflation expectations have remained firm. Other data released overnight saw the core consumer price index decline 1.1% y/y in May, off sharply from April€™s -0.1% print. Additionally, the May current account surplus was off 34.4% y/y to Â¥1.302 trillion. The Nikkei 225 stock index lost 2.35% to close at Â¥9,420.75. U.S. dollar offers are cited around the Â¥104.15 level. The euro moved lower vis-à-vis the yen as the single currency tested bids around the Â¥127.00 figure and was capped around the Â¥132.10 level. The British pound moved lower vis-à-vis the yen as sterling tested bids around the Â¥146.75 level while the Swiss franc moved lower vis-à-vis the yen and tested bids around the Â¥83.95 level. In Chinese news, the U.S. dollar was unchanged vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8318 in the over-the-counter market.