JP 225 forecast: the index may enter a sideways channel
The JP 225 stock index is trading within an uptrend, although it is currently undergoing a correction. The JP 225 forecast for today is positive.
JP 225 forecast: key trading points
Recent data: Japan’s current account totalled 4.483 trillion JPY
Market impact: the effect on the Japanese stock market is mostly positive
Fundamental analysis
Japan’s current account surplus reached 4.483 trillion JPY, well above both the forecast of 2.468 trillion JPY and the previous value of 3.701 trillion JPY. This indicates that the inflow of foreign income – exports minus imports plus overseas investment returns – was stronger than expected. This is a positive sign for the economy: the external balance remains stable, and the country earns more foreign revenue and investment income.
For the JP 225 index, however, the effect is mixed. A strong surplus can support the yen, and if the currency strengthens, exporters’ profits converted from USD or EUR into JPY will shrink, creating a short-term headwind for automakers, electronics, and industrial machinery producers. On the other hand, a stronger yen makes imported energy and raw materials cheaper, improving margins for domestic-oriented companies.
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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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The RoboForex Team