As per the latest Reuters Tankan survey, published early Wednesday, “Business confidence at big Japanese firms slid in January with manufacturers showing a negative reading for the first time in two years.”

The Reuters Tankan index for big manufacturers stood at -6 in January, down from +8 last month. With this, the figures marked the first negative reading since January 2021.

“Morale was much stronger in the service sector, with that index at +20 in January, a drop from +25 in the prior month which was its highest level in more than three years,” per Reuters.

The monthly sentiment survey also asks manufacturers if they expect business conditions to improve or worsen over the coming three months. As a result, the big manufacturers' index saw a 12-point improvement to +6 for April, while for service sector firms the outlook fell 5 points to +15.

USD/JPY picks up bids

The news appears to tease USD/JPY buyers as the Yen pair rebounds from the intraday low to 128.30 by the press time.

Also read: USD/JPY Price Analysis: All eye son the BoJ, bulls need to commit at key H1 support area