Release Explanation: The Tankan Manufacturing Index is a broad-based measure of manufacturing strength and is considered the best gauge of its industry's health. Given the speed with which businesses react to market conditions, changes in sentiment reflected in TMI can provide an early signal of future economic activity.

Trade Desk Thoughts: The Tankan business confidence survey, which includes some of the largest companies in Japan, has fallen to a new low of -58. This is a sign that the country may be in for an extended recession as companies cut jobs and limit spending. Japans exports plummeted in February by 49.4 percent as consumers worldwide curb spending. It is estimated that the Japanese economy, the second largest behind the United States, probably shrank10.9 percent in the last quarter alone.

Forex Technical Reaction: The yen had a volatile start to the new trading day. After the report was released the pair shot up 40 pips only to drop 125 in the next 5 minute candle. The pair has since regained its footing and is finding slight support at the neutral pivot point.