Here are all the details, and 5 possible outcomes for USD/JPY.
Published on Tuesday at 14:00 GMT.
Indicator Background
The CB Consumer Confidence Index provides an important snapshot of consumer confidence and spending. The release is carefully scrutinized by analysts and traders looking for an indication of which direction the economy is headed.
The indicator was down sharply in August, dropping to 60.6 points, well above the market forecast of 65.8. The release was also the indicator’s weakest performance since November. The markets are expecting a stronger September, with an estimate of 62.9 points.
Sentiments and levels
With the markets predicting some modest improvement in Europe, the safe haven yen has some room for losses at these levels. In the longer run, QE3 will continue weighing on the USD/JPY, especially as US figures weren’t too good. So, the overall sentiment is bullish on USD/JPY towards this release.
Technical levels, from top to bottom: 80, 79.70, 78.80, 78, 77.50 and 77.
5 Scenarios
- Within expectations: 60.0 to 67.0: In such a case, USD/JPY is likely to rise within range, with a small chance of breaking higher.
- Above expectations: 67.1 to 70.5: An unexpected higher reading can send USD/JPY above one resistance level.
- Well above expectations: Above 70.5: Another sharp increase in consumer confidence could propel the pair above two or more resistance levels.
- Below expectations: 56.5 to 59.9: A reading lower than forecast could send USD/JPY below one support level.
- Well below expectations: Below 56.5: An unexpected weak reading could push the pair below two or more support levels.
For more on USD/JPY, see the USD/JPY forecast.