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    USDJPY trends lower, so is Japanese activity data

    Japanese Machine orders took a dive in April, registering -11% MoM (after 5.5% previously and  with consensus expecting only -3%). This is how it looks in YoY terms:

    link do file download link

     Source: Bloomberg

    Despite high volatility in the series, up to March we could be talking about som estabilization o results since 2H of 2015, bu this is no longer the case.

    The machine tool orders published a couple hours later showed -25% YoY in preliminary May reading, somewhat better than -26.3% for April, but this does not change the fact that the results are ugly for a year now.

    But yen is not exactly a currency that could suffer from very weak domestic data. While Nikkei 225 lost almost 1%, USDJPY started to trend lower two days ago just below 108 and continued to do so with this data flow.

    link do file download link

     Deputy BoJ head Hiroshi Nakaso tried once again (to no avail) to stop this appreciation reminding of the bank’s readiness to act as CPI prospects are fragile on uncertain global growth and weak private consumption. 


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