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Since the index represents weighted mean value of above-listed indicators, it is considered that it can forecast economic tendency of the state for half of year in advance. If over the last three months, the index value has negative dynamic, then the conclusion about slowdown of economic development is made. The index is published monthly, during the first week, at 10:00 a.m EST (New York). Respond to published data is minor, though the index is important. Such a respond can be explained by a later publication of the index – in a month after announcing of all its components, therefore, its approximate value is already known.
By technical analysis we should basically understand employment of price chart (and results of its math interpretation) for further market and price forecast. Technical analysis rests upon repeated nature of market and implies that ups and downs of currency quotations on charts are rotated according to certain time periods. An advantage of technical analysis is its universal application: with its help one can research any financial contract for any period of time. The market accounts for everything. That means that any event, which could affect price behavior is already accounted by market and is reflected on the price chart. This proposition means that all factors impacting the price will be definitely reflected in its behavior, therefore, it is required to monitor quote graph.
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CGPI Japan Corporate Goods Price Index
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