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    USD/JPY under pressure sub 107.00, Nikkei 225 weighsIvan Delgado

    USD/JPY has come under pressure in Tokyo, last exchanging hands at 106.65 session lows, following a NY close of around 107.00, as risk aversion flows return in Asia, with the Nikkei 225 down by 0.83% just breaking 17,000.00, while US 30-year Treasury yields have also fallen quite sharply. Japanese machinery orders tumble Ahead of today's Tokyo open, Japan released some terrible numbers in April machine orders, which declined by 11%, making it the worst reading in more than 2 years. Orders were expected to see a reduction of 3.0% following a 5.5% recovery in March. The numbers should raise questions about the current state of affairs in the Japanese economy, following quite promising GDP figures for Q1 a few weeks ago. USD/JPY technicals Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "In the short term, the 1 hour chart shows that the price is well below a bearish 100 SMA,, whilst the technical indicators have recovered modestly within negative territory, with not enough strength to confirm an upward continuation at the time being.""In the 4 hours chart, the Momentum indicator holds flat below the 100 level while the RSI indicator has barely bounced form oversold readings, also reflecting the absence of buying interest around the pair. Despite movements are expected to be moderated, a break below the 106.60 level should open doors for a steeper decline, down to 105.50 May´s low", Valeria adds.


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