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 16.2 percent in November which is almost twice the forecasted decrease. This is the steepest drop ever recorded; indicating the overall outlook for the country's industrial sector is grim. Machine orders from manufacturers fell an astounding 33.2 percent. This is a drastic change from Octobers 2.2 percent fall seen in October. This steep decline only mean that overall industrial production numbers from Japan will worsen further with some economist suggesting the sluggishness to continue until at the least, the middle of 2009.
Forex Technical Reaction: The Japanese yen has not had much of a reaction to these news releases and is currently trading just above the critical 89.00 level at 89.20.