Release Explanation: This report evaluates the monthly change in output that is produced by Japans service sector. Japans economy weighs heavily on exports and because this report excludes manufacturing and only measures the services industries it is a key indicator of domestic activity. The data is collected from wholesale and retail trade, financial services, health care, real estate, leisure, and utilities. Strong spending in the services sector usually translates to higher employment rates, and can also be a sign of strong consumer spending now and in the future.
Trade Desk Thoughts: Japans Tertiary Industry Activity Index increased 0.4 percent month over month in January. This was against analysts expectations for a 0.5 percent drop. Sectors that contributed to the increase in the index were postal services, information and communications, learning support, health care and welfare, and real estate. Meanwhile, these sectors declined for the month, transportation and the finance and insurance services.
Forex technical Reaction: The Japanese yen has gained 20 pips since this release and is trading above the neutral pivot point at 98.40