Release Explanation: Capital spending measures the total amount of new capital expenditures by private businesses. A rising trend has a positive effect on the nation's currency because high levels of business investment are a sign of a strong economy while lower readings are a sign that a nations may be contracting.

Trade Desk Thoughts: Capital spending in Japan has fallen by 17.3 percent during the fourth quarter of 2008. This is a steeper drop than the 15.6 percent decrease which was expected by economists. Spending was cut in the last quarter at the fastest pace in the past ten years. This was caused by exports crashing to a halt as manufacturers earnings evaporated. This report is expected to be used to revise the GDP statement.

Forex Technical Reaction: The Japanese yen is has not had a significant reaction to this news. The pair is currently finding support along the neutral pivot point.