It has not been a good week for Japan's economic outlook as following last night's dismal GDP print, tonight shows Japanese Machine Orders collapsed 11.9% MoM in December - the biggest crash since Japan raised the sales tax in May 2014...

Against expectations of a modest 2.0% drop (after November's 5.7% rise, Machine Orders collapsed...

Foreign Orders cratered 13.2% led by manufacturers suffering a 13.3% MoM drop.

This drops Japanese Machine Orders back to practically unchanged since May 2013...

Now that's stagnation!

 

The reaction is another leg lower in USDJPY...