Global macro overview for 11/04/2016:
According to the Cabinet Office, Japan's machinery orders excluding ships and utility items tumbled a seasonally-adjusted 9.2% month-on-month in February after surging 15% in January. Nevertheless, the decline is lower than economists had anticipated (-11.8%). Moreover, in the December 2015 the Japanese economy contracted by 0.3%, led by a slump in consumer spending. The most recent readings suggest that the economy fell back into recession. In conclusion, the Japanese yen has gained more than 10% versus the US Dollar this year and the ongoing strength of the exchange rate has made it ever more likely that the Bank of Japan will announce more stimulus at the meeting later this month.
Let's now take a look at the technical picture of USD/JPY pair on the weekly timeframe. The price has fallen from the triangle pattern and is currently in a free-fall towards the next support at the level of 105.15. The bears are in full control over this market for now and there is no evidence for a trend reversal.
