US dollar was higher against the Japanese yen during Wednesday Asian trade despite the mixed economic data, released from Japan.
USD/JPY advanced to 96.43, adding 0.41% on Wednesday. Yesterday US session showed that the pair lost almost 2.1%. Support was expected at Fridays low, 95.00, while resistance was to be met at 99.29, Mondays high.
Earlier on Wednesday it was reported that Machine Orders in Japan declined by 1.1% in April on annual basis, compared to the 2.4% increase during the preceding period. Preliminary estimates showed a deeper decline in April, 4.3%. In monthly terms, Machine Orders took a steep slide in April, 8.8%, mismatching the projected 8.2% drop, while the indicator recorded a positive change during March, up by 14.2%. The indicator dropped in April for the first time in three months due to insufficient high-volume orders. Japanese government retained its estimate, that Machine Orders will improve.
Another report said that Corporate Goods Price Index (CGPI) in Japan added 0.6% in May on annual basis, in line with expectations, improving in comparison with the revised 0.1% rise during the previous period. The index rose at a smaller rate during May on monthly basis, 0.1%, compared to the 0.3% rise during April. Experts predicted a rise by 0.2%.
Bank of Japans decision disappointed market expectations for measures to ease government bond market volatility after banks latest policy meeting. Tuesday’s climb for the yen was the currency’s biggest rise in one day in the past three years.
Meanwhile, US dollar was under selling pressure versus the yen on Tuesday, after Bank of Japan did not change its monetary policy course. No additional stimulus measures were introduced.
Japanese yens expansion lead to dips both of domestic shares and of shares, comprising S&P 500 index and Dow Jones 30 Industrial Average.
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