The Leading Economic Index is a combination of 12 major indicators for Japan. These include stocks, orders for machinery, stock prices and other important short and medium term economic indicators. Movements of these indicators precede larger developments in the economy.
This is a leading indicator. Analysts believe that the Leading Index provides a forecast of the future state of the domestic economy 6-9 months after the reporting period.
The chart of the entire available history of the "Japan Leading Index" macroeconomic indicator. The dashed line shows the forecast values of the economic indicator for the specified dates.
A significant deviation of a real value from a forecast one may cause a short-term strengthening or weakening of a national currency in the Forex market. The threshold values of the indicators signaling the approach of the critical state of the national (local) economy occupy a special place.