Japan core machinery orders, which indicates the trend in capex spending, posted a positive surprise in May with a 1.7% increase vs a 5% decline forecast and after a 12% drop in April.

From a technical point of view, on a daily chart, the pair remains under pressure below a declining trend line drawn since early March. The daily RSI remains within its selling area. Readers may therefore consider the potential for further weakness below resistance at 108.2 (early July top). The nearest support would be set at 106.00 (June bottom) and a second one would be set at 104.15 (March 13 bottom) in extension.

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DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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