A higher-than-expected figure should be seen as positive (bullish) while a lower-than-expected figure should be seen as negative (bearish).
The Impact of Tankan Large Manufacturer Index in Forex Trade refers to the significance of the Tankan survey conducted by the Bank of Japan, specifically focusing on the sentiment and business conditions of large manufacturing companies in the country. The Tankan Large Manufacturer Index is a key indicator that reflects the overall economic health of Japan’s manufacturing sector. Forex traders closely monitor this index as it provides valuable insights into the country’s industrial performance. A positive reading suggests optimism among large manufacturers, potentially strengthening the Japanese yen, while a negative reading may indicate economic challenges, leading to a potential weakening of the currency. Forex market participants use the Tankan Large Manufacturer Index to assess the broader economic landscape in Japan, make informed trading decisions, and adjust their strategies based on the observed impact on currency pairs involving the Japanese yen.