JP 225 forecast: the index approaches resistance
The JP 225 stock index may break above the resistance level and reach a new all-time high. The JP 225 forecast for today is positive.
JP 225 forecast: key trading points
Recent data: the Bank of Japan kept the policy rate at 0.75%
Market impact: the effect on the Japanese stock market
Fundamental analysis
The Bank of Japan’s decision to keep the rate at 0.75%, combined with an upward revision of economic growth and inflation forecasts, should be interpreted as a more hawkish signal than the rate level itself. Improved macroeconomic expectations from the regulator increase the likelihood of further rate hikes and, accordingly, strengthen the influence of rate expectations on the equity market in the current period.
Given the JP 225 index’s sensitivity to yen dynamics and its significant share of large exporters, the combination of higher growth and inflation forecasts with a clear hint of further rate hikes increases the likelihood of short-term pressure on the index.
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Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
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