According to the results of the recent survey conducted by Reuters, the Tankan index (the indicator showing the business activity among Japan’s major manufacturers) shrank from +17 in August down to +9 in September, Market Leader reports.
This happens t be the biggest monthly drop since September 2014. At this point, the index is still close to the highest value over the last 8 months, Masterforex-V Academy reports. s
More experts say that the concerns are growing. The similar index for the local service sector also showed a slowdown over the reporting period. This was a drop from +27 in August down to +23 in September. The service sector report shows even lower sentiment and bigger concerns over the last 8 months. At the same time, the index is expected to go further down over the next 3 months.
At the same time, the Chinese economy is still slowing down, which also adds fuel to the fire. Since this is he world’s 2nd biggest economy, it affect the overall global economy, which in tis turn raises more concerns among experts worldwide.
As for USDJPY, the Japanese Yen is consolidating around 119,78 after breaking a major level – 120,40, Masterforex-V Academy reports. At this point, the closest major levels of support are 116,13 and 115,86 as well as the bottom of the ascending sloping channel. The Japanese Yen may resume its downtrend against the U.S. Dollar only after breaking through and consolidating above the MF sloping channel and pivot 125,25.
