The Reuters Tankan Index measures business sentiment among 200 manufacturers and 200 non-manufacturers in Japan on a monthly basis. The index is calculated by subtracting the percentage of respondents who report poor business conditions from those who report good conditions. This index is used to assess economic trends and can provide insight into future economic activity.
A higher than expected figure should be seen as positive (bullish) for the JPY while a lower than expected figure should be seen as negative (bearish) for the JPY.
Source: Tankan Sponsored by Thomson Reuters