Japanese Yen Crosses Hit by 230 Point Plunge in the Dow

[DailyFx]

Japanese Yen crosses came under severe selling pressure on the heels of a major reversal in the Dow.



Economic data was better than expected with machine tool orders rising a whopping 10 percent in the month of May. The market was only looking for a 1 percent rise, so the surprise was huge. Looking ahead, Current Account and Trade Balance figures should have a significant impact on the currency, as the economy remains highly dependent on trade. In addition, yearly Domestic CGPI figures are expected to increase on the back of high inflation. However the fate of the yen crosses will continue to largely depend upon the movements in equities. If the Nikkei follows the Dow lower tonight, we could see further weakness in USD/JPY.