Japan’s Nikkei share average fell to its lowest level in nearly three weeks on Monday morning as profit warnings from shipping group Nippon Yusen KK and Daido Steel Co Ltd underscored concerns over slowing global growth.
Large manufacturers’ sentiment fell to “minus three” from “minus one” in the previous June survey, the central bank’s Tankan survey showed.
The figures represent the percentage of firms saying business conditions are good minus those saying they are bad and are a key measure used by the BoJ in formulating monetary policy.
Japanese businesses have taken a hit from a flare-up in the row between Tokyo and Beijing over the ownership of islands in the East China Sea. They also reported that housing starts fell 5.5% in August, against the market expectation for a 7.5% fall.
The large manufacturers’ business sentiment index fell to -3 in September survey, compared to -1 in the June survey, marking its fourth straight quarter in negative territory.
The USD/JPY has solid support at 77.51, and a fall through could take it to the next support level of 77.14. On the upside the USD/JPY is expected to find its first resistance at 78.18, and a rise through could take it to the next resistance level of 78.48 according to Livetradingnews.com analysts.
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service
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