Economists forecast that the Tertiary Industry Activity Index will increase by 1% in August after falling by 1.3% in July.

The Index is important since it measures activity levels in Japan's services sector across areas, including wholesale and retail trade, finance, insurance, real estate, transportation, information and communications, and personal and business services.

Better-than-expected numbers could signal a pickup in service sector activity, which accounts for over 70% of GDP. Upbeat trends could fuel expectations of a Q4 2024 Bank of Japan rate hike.

Considering the Bank of Japan's focus on the services sector, higher-than-forecasted figures could push the USD/JPY below 139.500.

On Thursday, September 12, Bank of Japan Board Member Tamura supported comments from other Board Members, reiterating that the future rate path will depend on inflation and the economy.

Boris Kovacevic, Global Macro Strategist at Convera, recently remarked on the Bank of Japan's shifting stance, stating,