Release Explanation: This release measures the value of new machinery orders with manufacturers. Japan is a manufacturing and exporting giant and therefore these numbers impact the overall view of how that side of the economy is fairing. When manufacturers increase their spending on machinery it signals that the industry is in an expansionary phase.
Trade Desk Thoughts: Machinery orders for Japan fell by 1.7 percent in December which is much better than the 8.6 percent fall that analysts had been expecting. This is third continous month in which machine orders fell. A wave of recent firings and canceled spending plans by manufacturers in Japan has increased the risk of a prolonged recession in the country.
Forex Technical Reaction: The Japanese yen found resistance just after the new trading day started as the pair ran into the R1 level at 92.46 before reversing 40 pips.