|Core Machinery Orders m/m||-13.1%||-1.6%||2.8%|
|BSY Manufacturing Index||-4.6||-6.2||-10.3|
|Tertiary Industry Activity m/m||-1.1%||-0.1%||-0.3%|
From Japan, the economic releases for last week are not that impressive. The indicators were ranked with low to medium impact and they did not influence the market that much. The week’s main event was actually the election of the BoJ governor. Haruhiko Kuroda, 68, is now in charge of Japan’s Central Bank. He has the duty to end deflation and get the CPI to 2%.
The yen weakened in the past weeks on monetary easing expectations. If BoJ will not take action, even with the new governor, we might see a comeback of the yen and a reversal in the current move. NIKKEI225 touched another high after the confirmation vote, climbing to its highest level since before Lehman Brothers Inc. fall.
For next week we are expecting only the Trade Balance, at -1.01T yen.
Getting to the USDJPY chart, we will see that it has touched another high just a little over last week’s one at 96.69, but was rejected pretty fast back to 95.05. Currently it opened at 94.42, confirming last week’s forecast, because the risk aversion triggered by the European problems with Cyprus. There is a possibility to see a consolidation between these limits.