monday will bring bank lending ,current account and economy watchers sentiment and wednesday will bring japanese M2 Money Stock y/y 1.3% 1.3% and Prelim Machine Tool Order.
Japanese machine tool orders serve as a leading indicator of industrial production because they represent capital investments made by manufacturers in anticipation of future production needs. An increase in machine tool orders typically signals an expectation of increased demand for their products in the coming months or years.
Here's how machine tool orders correlate with Japan's industrial production:
Economic Growth: The performance of the Japanese manufacturing industry, as reflected by machine tool orders, has a direct correlation with economic growth. Increased demand for machine tools indicates a thriving manufacturing sector, which in turn leads to greater job creation, higher wages, and increased consumer spending.
Manufacturing Activity: Machine tool orders reflect the level of investment and production in the country's manufacturing sector. As one of the world’s largest manufacturing powerhouses, Japan’s economic performance relies heavily on the success and growth of this sector.
Leading Indicator: Machine tool orders are considered a leading indicator because they represent capital investments made by manufacturers in anticipation of future production needs. When companies order new machine tools, it typically signals an expectation of increased demand for their products in the coming months or years.
Broader Economic Trends: The performance of machine tool orders can often be an early indicator of economic trends and future growth prospects. Superior machine tools are a crucial factor in manufacturing a wide range of machinery, so machine tools are viewed as having a critical presence far greater than their share alone would indicate.
A decline in machine tool orders can indicate a slowdown in economic growth, potentially resulting in negative effects on currency exchange rates
Several economic data releases could influence the EUR/JPY pair. Here's a breakdown of potential catalysts:
Eurozone Sentix Investor Confidence: On February 10, 2025, the Eurozone Sentix Investor Confidence data was released and the ECB President Lagarde Speaks.
ECB and BOJ Monetary Policy: Monetary policy decisions from both the European Central Bank (ECB) and the Bank of Japan (BOJ) significantly impact the EUR/JPY1. Keep an eye on any statements or policy changes from these central banks especially as big boss lagarde will speaks on monday.
Eurozone Inflation Trends: Inflation trends in the Eurozone can sway the EUR/JPY forecast.
Japanese Economic Data: Releases such as the Eco Watchers Survey and Bank Lending data out of Japan can also have an impact, ppi y/y( Producer Price Index (PPI), will be on the card this week as it measures Change in the price of goods sold by corporations
Global Risk Sentiment: Overall global risk sentiment influences the EUR/JPY.
Potential Scenarios to Watch For:
Divergent Monetary Policies: Divergent monetary policies between the ECB and BOJ could create tricky situations for EUR/JPY.
Yen Strength: Keep an eye on yen strength, as it can cause major JPY pairs to fall, including EUR/JPY.
Technical Levels: Watch key levels such as the 160.00 handle; holding below this level could indicate a bearish outlook, with a potential drop to 155.431 ,146.867-152,743.
please watch monthly chart and wait on 4hr for POE
Japanese machine tool orders serve as a leading indicator of industrial production because they represent capital investments made by manufacturers in anticipation of future production needs. An increase in machine tool orders typically signals an expectation of increased demand for their products in the coming months or years.
Here's how machine tool orders correlate with Japan's industrial production:
Economic Growth: The performance of the Japanese manufacturing industry, as reflected by machine tool orders, has a direct correlation with economic growth. Increased demand for machine tools indicates a thriving manufacturing sector, which in turn leads to greater job creation, higher wages, and increased consumer spending.
Manufacturing Activity: Machine tool orders reflect the level of investment and production in the country's manufacturing sector. As one of the world’s largest manufacturing powerhouses, Japan’s economic performance relies heavily on the success and growth of this sector.
Leading Indicator: Machine tool orders are considered a leading indicator because they represent capital investments made by manufacturers in anticipation of future production needs. When companies order new machine tools, it typically signals an expectation of increased demand for their products in the coming months or years.
Broader Economic Trends: The performance of machine tool orders can often be an early indicator of economic trends and future growth prospects. Superior machine tools are a crucial factor in manufacturing a wide range of machinery, so machine tools are viewed as having a critical presence far greater than their share alone would indicate.
A decline in machine tool orders can indicate a slowdown in economic growth, potentially resulting in negative effects on currency exchange rates
Several economic data releases could influence the EUR/JPY pair. Here's a breakdown of potential catalysts:
Eurozone Sentix Investor Confidence: On February 10, 2025, the Eurozone Sentix Investor Confidence data was released and the ECB President Lagarde Speaks.
ECB and BOJ Monetary Policy: Monetary policy decisions from both the European Central Bank (ECB) and the Bank of Japan (BOJ) significantly impact the EUR/JPY1. Keep an eye on any statements or policy changes from these central banks especially as big boss lagarde will speaks on monday.
Eurozone Inflation Trends: Inflation trends in the Eurozone can sway the EUR/JPY forecast.
Japanese Economic Data: Releases such as the Eco Watchers Survey and Bank Lending data out of Japan can also have an impact, ppi y/y( Producer Price Index (PPI), will be on the card this week as it measures Change in the price of goods sold by corporations
Global Risk Sentiment: Overall global risk sentiment influences the EUR/JPY.
Potential Scenarios to Watch For:
Divergent Monetary Policies: Divergent monetary policies between the ECB and BOJ could create tricky situations for EUR/JPY.
Yen Strength: Keep an eye on yen strength, as it can cause major JPY pairs to fall, including EUR/JPY.
Technical Levels: Watch key levels such as the 160.00 handle; holding below this level could indicate a bearish outlook, with a potential drop to 155.431 ,146.867-152,743.
please watch monthly chart and wait on 4hr for POE
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.