What do you expect out of the next Tankan survey?

On August 31st the Bank of Japan will release its quarterly Tankan survey which is believed by most market participants to be the best and most complete indicator of Japanese economic performance. It tends to move currency markets, especially JPY crosses and given all recent developments this could be an interesting figure which may cause a spike in either direction, at least temporary.

I do expect a reading which points towards weak spots in the Japanese economy, but in general I think the JPY will strengthen rather than weaken and defy to moronic economic policies of Abe. Before you completely dismiss a stronger Yen despite a weak Japanese economy keep in mind that the Yen was historically strong against major crosses despite economic performance as traders used the Yen as a carry trade and some viewed it as a safe haven as well.