Tankan Survey Helps Yen to Gain

The very good Tankan survey, which was released today, helped the Japanese yen to rally, though gains were relatively small. Nervousness on the Forex market ahead of the Federal Reserve meeting was helping the currency too.

The Tankan manufacturing index for large enterprises rose from 12 in September quarter to 16 in December quarter, exceeding expectations and reaching the highest level since 2008. The non-manufacturing index was up from 14 last quarter to 20 this quarter, also above forecasts. The indexes for medium and small enterprises also went up.

The positive report suggested that Abenomics are working and should help the economy going forward without additional stimulating measures. Such outlook is positive for the Japanese currency.

USD/JPY was down from 103.26 to 103.01 as of 21:50 GMT today after touching the low of 102.63. EUR/JPY was flat at 141.78, while GBP/JPY slid from 168.21 to 167.91, following the drop to 167.32.

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