THE TAKEWAY: Japanese business survey beats expectations > Survey sentiment indicates future economic growth > Yen gains versus the Dollar.
The Japanese Yen rallied versus the Dollar after the Tankan large manufacturers and non manufacturers Index came in at negative one and eight for the second quarter of this year versus negative four and five the preceding quarter, beating expectations set by the Bank of Japan. Furthermore, the similar “outlook” survey posted better than expected results indicating business sentiment may have elevated, providing positive feedback which suggests future economic expansion may be on the horizon.
The Yen had previously sold-off versus the dollar over the last 24 hours of trading and appeared to be in correction leading up the release. It’s unclear how much of an impact the news had on the move due to the prior day sell-off.
USD/JPY 1 Minute Chart