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.