Trade Desk Thoughts - Japan Tankan Manufacturers Index, Japan Tankan Non-Manufacturers Index

Japan Tankan Manufacturers Index Actual -3, Estimated -2, Previous 5
Japan Tankan Non-Manufacturers Index Actual 1, Estimated 5, Previous 10

Release Explanation: This release shows us a forecast of the next quarter's large manufacturer's index. The figure is a measure of future business expectations, providing an indication of economic trends based on factors like projected profits and capital investment. The headline number is the projected value of the Large Manufacturer's Index for the next quarter.

Trade Desk Thoughts: The Japanese Tankan survey revealed that business sentiment has turned negative for the first time in five years. The large scale posted a reading of negative 3 which is the lowest reading since June of 2003. This is also lower than analysts’ expectations and was down from a reading of 5 for the second quarter. The survey projected a negative 1 for the outlook of the fourth quarter.

Forex Technical Reaction: The yen has bounced off of the 200 day SMA situated at 105.95, but the pair still has the 20 day above acting as resistance at 106.25.

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