EUR/JPY drops below 119.00 on above-forecast Japanese data

• EUR/JPY fell from 119.15 to 118.82 on upbeat Japanese data.
• Japan's core machinery orders rose 13.9% in June, beating the forecast of -1% by a big margin.

The bid tone around the Japanese Yen strengthened, pushing the EUR/JPY to levels below 119.00 after better-than-expected Japanese economic data.  

Japan's core machinery orders rose 13.9% month-on-month in June, beating the estimated drop of 1% by a big margin. Core machinery orders had dropped by 7.8% in May. The annualized figure also bettered estimate with a 12.5% print.

Core machinery orders are indicative of future corporate CAPEX (capital expenditure) plans. As a result, the above-forecast print is boding well for the JPY.

EUR/JPY ran into offers around 119.15 following the release of Japan's data and is now trading at a session low of 118.82.

The dip, however, could be short-lived as the US stocks put on a good show on Tuesday on President Trump's decision to delay tariffs on China.  

Therefore, investors may buy risk and sell haven assets like JPY in the Asian session.

Pivot levels