The Bank of Japan (BoJ) has reported that the Producer Price Index (PPI) dropped by 0.2% in June, which is contrary to expectations of a 0.1% increase. The annual rate stood at 4.1%, which is lower than the 5.1% registered in May and softer than the market consensus of 4.3%.

The Export Price Index fell 0.6% compared to the previous months, and the Import Price Index dropped 3.1%. 

In a different report, the Cabinet Office reported that Machinery Orders tumbled 7.6% in May, against expectations of a 1% increase. 

Market reaction: 

The USD/JPY is falling for the fifth consecutive day and is it trading slightly above 140.00, at the lowest level since June 16. It held steady with a bearish bias after the reports as market participants await US inflation data due later on Wednesday at 12:30 GMT.