Here are all the details, and 5 possible outcomes for USD/JPY.
Published on Tuesday at 14:00 GMT.
Indicator Background
The CB Consumer Confidence Index provides a snapshot of the level of confidence among US consumers. Analysts carefully follow the indicator, as consumer confidence often translates into consumer spending, a key component of economic growth.
The indicator jumped to 100.1 points in August, above the estimate of 97.2 points. Another strong reading is expected for September, with a forecast of 98.6 points.
Sentiments and levels
The Fed didn’t raise rates at last week’s meeting, but the policy statement was hawkish, hinting strongly at a rate hike in December. The BoJ continues to resist pressure to adopt further easing, which has buoyed the yen. The pair could test the symbolic 100 level this week. So, the overall sentiment is neutral on USD/JPY towards this release.
Technical levels, from top to bottom: 104.25, 102.83, 101.52, 99.98, 98.95 and 97.61
5 Scenarios
- Within expectations: 95.0 to 102.0: In such a case, USD/JPY is likely to rise within range, with a small chance of breaking higher.
- Above expectations: 102.1 to 106.0: An unexpected higher reading can send USD/JPY above one resistance level.
- Well above expectations: Above 106.0: Another sharp increase in consumer confidence could propel the pair above two or more resistance levels.
- Below expectations: 90.0 to 94.9: A reading lower than forecast could send USD/JPY below one support level.
- Well below expectations: Below 90.0: An unexpected weak reading could push the pair below two or more support levels.
For more on USD/JPY, see the USD/JPY forecast.
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