Yen’s gains on cards after tankan survey; gap-down confirms

Japan's upbeat Q2 Tankan survey of business sentiment evidenced positive 15 for the diffusion index which is beyond forecast at 12 for major manufacturers, up from previous flash at 12, while the index for major non-manufacturers came in at plus-23, higher than the plus-22 expected and up from plus-19 in March.

These numbers suggested JPY in good mood of recovery with the help of industrial o/p.

For today, intraday technical charts suggest little sideways to upward, but EOD charts indicate little weakness in this pair as we traced a gap down opening with a spinning top candle pattern and more evidently these price patterns have been substantiated with abundant volumes.

Oscillating indicators such as RSI (14) and slow stochastic curves are moving in convergence with prevailing price patterns.

RSI currently oscillating at 43.0323 while %D line cross over at above 60 levels on slow stochastic which is not that significant for both bulls and bears.