Release Explanation: This release measures the change in the price of services which are purchased by corporations. It is considered a leading indicator of consumer inflation because when corporations pay more for the services in which they require for production of goods they usually pass on the extra costs on to the consumer.
 
Trade Desk Thoughts: The corporate services price index fell to -2.6 percent for the month as commodity prices tumbled and a deepening recession caused companies to slow spending. Advertising agencies have been especially hard hit as demand wanes. This is the fifth month that the corporate services price index has fallen. Cheaper oil prices have reduced transportation costs which have caused Japan Airlines, and All Nippon Airways, which are two of Japans largest airlines, have plans to lower the cost of the fuel surcharge they charge. There are also signs that deflation could return to the world’s second largest economy, a problem that has plagued Japan since the early 90’s.
 
Forex Technical Reaction: The yen has used the neutral pivot point as a springboard higher. The pair has found resistance in the 97.80 area which coincides with the previous days neutral pivot point.