Global macro overview for 17/02/2016:
According to the report of the Cabinet Office, Japan's core machinery orders rebounded in December, despite mounting uncertainty over the global economy. After a massive plunge of 14.4% a month earlier, seasonally-adjusted machinery orders excluding ships and utility items jumped by 4.2% on month in December. Moreover, the Japanese companies expect core machinery orders to surge 8.6% in the first quarter of the year. In conclusion, the initial estimates of the GDP in the last quarter declined 0.4% and shrunk 1.4% on an annual basis. This kind of data does not support the perceived recovery despite the depredate BoJ measures.
Let's take a closer look at the technical picture of USD/JPY in the daily time frame. After the last week sell-off, the pair is trying to bounce and test the technical resistance at the level of 115.94. The next important support is seen at the level of 110.06 and any breakout below this level before the resistance is violated would mean the near-term top is in place (at the level of 125.86).
