The Japanese Yen appreciated 2.8 percent in the yesterday’s trading session on the back of rise in risk aversion in the global markets which led to increase in demand for the low yielding currency. Further, no stimulus measures from the central banks also supported an upside in the currency. The Yen touched an intra-day high of 95.60 and closed at 96.01 against dollar on Tuesday.
Japan’s Prelim Machine Tool Orders declined by 7.4 percent in May from earlier fall of 23.6 percent a month ago. Core Machinery Orders declined by 8.8 percent in April as against a rise of 14.2 percent a month ago. Corporate Goods Price Index (CGPI) rose to 0.6 percent in May from earlier rise of 0.1 percent in April.
For intra-day, we expect the Japanese Yen to appreciate, taking cues from rise in risk aversion in the global markets, which will lead to increase in demand for the low-yielding currency. However, unfavorable economic data from the country will cap sharp gains in the currency.