Sharp Reversal Candles in Yen Crosses

Strong reversal candles can be seen in all of the Yen crosses, but USD/JPY was the only pair that managed to end the US trading session in positive territory. The Dow Jones continued to be the primary driver of yen strength or weakness given the lack of Japanese economic data released overnight. The Bank of Japan did release its monthly economic report however in which it raised its labor market assessment for the first time in two years. On the economy, the BoJ feels that the outlook has not changed. Finance Minister Omi and Economic Minister Ota beg to differ. Omi claims that Japan has beaten deflation while Ota indicated that the economy and labor market are both improving. Japanese Machine orders are due for release tonight. A big retracement is expected after last month?s rise.

The Bank of Japan did release its monthly economic report however in which it raised its labor market assessment for the first time in two years. On the economy, the BoJ feels that the outlook has not changed. Finance Minister Omi and Economic Minister Ota beg to differ. Omi claims that Japan has beaten deflation while Ota indicated that the economy and labor market are both improving. Japanese Machine orders are due for release tonight. A big retracement is expected after last month?s rise.