JPY gains on strong Tankan survey – BBH

FXStreetOct 1, 2025 11:09 AM

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Japanese Yen (JPY) is outperforming as Japan’s Q3 Tankan survey confirmed steady business conditions, with large manufacturers and non-manufacturers reporting robust sentiment. The data supports expectations that the Bank of Japan will resume rate hikes at its October 30 meeting, underpinning the yen’s strength, BBH FX analysts report.

Business sentiment supports Yen

"JPY is outperforming. Japan’s Q3 Tankan business survey was firm. The all industries business conditions index printed at 15 for a fourth consecutive quarter, consistent with an ongoing recovery in real GDP growth."

"The details were good and in line with consensus. Large manufacturers’ sentiment improved to 14 vs. 13 in Q2, while large non-manufacturers sentiment printed at 34 for a second consecutive quarter. Our base case is for the Bank of Japan to resume raising rates at the October 30 meeting (63% priced-in) which bodes well for JPY."

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