EUR/JPY drops below 119.00 on above-forecast Japanese data

EUR/JPY fell from 119.15 to 118.82 on upbeat Japanese data.
Japan's core machinery orders rose 13.9% in June, beating the forecast of -1% by a big margin.

Omkar Godbole FXStreet Contributor

The bid tone around the Japanese Yen strengthened, pushing the EUR/JPY to levels below 119.00 after better-than-expected Japanese economic data.

Japan's core machinery orders rose 13.9% month-on-month in June, beating the estimated drop of 1% by a big margin. Core machinery orders had dropped by 7.8% in May. The annualized figure also bettered estimate with a 12.5% print.

Core machinery orders are indicative of future corporate CAPEX (capital expenditure) plans. As a result, the above-forecast print is boding well for the JPY.

EUR/JPY ran into offers around 119.15 following the release of Japan's data and is now trading at a session low of 118.82.

The dip, however, could be short-lived as the US stocks put on a good show on Tuesday on President Trump's decision to delay tariffs on China.

Therefore, investors may buy risk and sell haven assets like JPY in the Asian session.

Pivot levels

1. R3 121.78
2. R2 120.68
3. R1 119.86
PP 118.77
1. S1 117.94
2. S2 116.85
3. S3 116.03

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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