Current trend

The leading Japanese stock index NI 225 is correcting near the level of 39281.0.

The currency market is under intense pressure after USD/JPY re-surfaced above 149.00 for the first time since August 2024, prompting Japan's top currency diplomat Atsushi Mimura to warn of speculative moves. If his predecessor Masato Kanda had previously noted similar uncertainty, investors perceived this as a signal of currency interventions on the part of the regulator. The current warning may be intended to reduce trading volatility so that a smaller amount is required for the transaction, as well as to reduce possible panic sentiment. The recent words of Japanese Prime Minister Shigeru Ishiba, who stated that the economy is not yet ready for a new increase in borrowing costs, were also quite positive for the stock market.

Against this backdrop, bond yields rose slightly: the rate on 10-year bonds rose to 0.908% from 0.826%, and on 20-year bonds to 1.721% from 1.672%.

The growth leaders in the index are Resona Holdings Inc. ( 8.83%), Konami Corp. ( 8.74%), Isetan Mitsukoshi Holdings Ltd. ( 7.84%), Recruit Holdings Co., Ltd. ( 5.83%).

Among the leaders of the decline are Nitori Holdings Co. Ltd. (–1.94%), Meiji Holdings Co., Ltd. (–0.90%), Nippon Paper Industries Co., Ltd. (–0.81%).

Support and resistance

On the daily chart, the price is approaching the resistance line of the ascending channel with dynamic boundaries of 42000.0–37000.0.

Technical indicators are preparing to continue strengthening the previously received buy signal: the AO histogram is forming new ascending bars and the fast EMAs on the Alligator indicator are moving away from the signal line, expanding the fluctuation range.

Support levels: 38940.0, 36840.0.

Resistance levels: 39700.0, 42200.0.

Trading tips

If the asset continues to grow and consolidates above the resistance level of 39700.0, buy positions with a target of 42200.0 will be relevant. Stop-loss — 39300.0. Implementation time: 7 days and more.

If the asset reverses and declines and the price consolidates below 38940.0, short positions can be opened with the target at 36840.0. Stop-loss — 39500.0.