Japan’s services sector has been expanding at its fastest pace in nearly a year, while the overall private sector has recorded its strongest growth in 32 months, supported by steady demand, according to a private survey released on Wednesday.

The recovery has therefore become more broad-based, with demand conditions improving simultaneously across both manufacturing and services.

Cost pressures have moderated, as input prices increased at their slowest rate in almost two years. At the same time, output price inflation climbed to a seven-month high as companies passed higher costs on to customers.

Business sentiment for the next 12 months remains positive.

Meanwhile, the yen continues to weaken against the U.S. dollar, with USD/JPY quotes moving higher. The market may encounter resistance around the 158.00 level.