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 3.2 percent in January which is much better than the 4.9 percent fall that analysts had been expecting. This is fourth continuous month in which machine orders fell. A wave of continued 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 has not had a significant reaction to these releases and is currently testing the previous day’s high near 98.85.