JP 225 forecast: the index resumes growth
The JP 225 stock index has bounced off the support level within an uptrend. The JP 225 forecast for today is positive.
JP 225 forecast: key trading points
Recent data: Japan's inflation rose 3.00% year-on-year in October 2025
Market impact: moderately negative for the Japanese stock market
Fundamental analysis
Japan’s core Consumer Price Index showed an annual increase of 3.0%, in line with the forecast and slightly above the previous 2.9%. For the market, this indicates that inflation remains above the Bank of Japan’s 2.0% target but is not accelerating more than expected. In other words, the economy is no longer stuck in chronic deflation, but we also see no signs of runaway inflation that would force the regulator to sharply tighten policy.
For the JP 225 index, the impact is mixed as it includes many export-oriented companies, for which the key factors are the yen’s exchange rate and borrowing costs. If the market decides that with this level of inflation, the Bank of Japan may afford to slightly raise rates or further loosen its yield-curve control, this could strengthen the yen.
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