By FX Empire.com
The USD/JPY pair dropped early Wednesday even after Japan announced a better than forecasted numbers regarding Machine Orders for August, as the dollar weakness prevent the pair from recording any gains.
Machine Orders in August came at 11.0% compared to the previous drop of 8.2%, the improvement in the Machine Orders reflect the strong capital spending in Japan, which in turn showed the recovery in the Japan’s manufacturing sector.
Optimism is still seen across financial markets after the EU leaders pledged to contain the debt crisis, which open the way for investors to increase demand for higher-yielding currencies trying to cover some of the previous losses.
On Thursday at 23:50 GMT (Wednesday), the Bank of Japan will release the minutes for its September 6-7 meeting.
At 23:50 GMT, Japan will issue the Tertiary Industry Index for August, where it had a previous reading of –0.1%.
The U.S. economy will release the Trade Balance for August at 12:30 GMT, where it’s expected to show a widening deficit to $46.0 billion from $44.8 billion.
Also at 12:30 GMT, the U.S. economy will issue its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance increased 401 thousand last week.
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