Japanese stocks closed lower on Friday, with the Nikkei 225 down 0.68% to 38,451.15. Auto and game stocks led the declines; Toyota Motor dropped 1.7%, Capcom slipped 2.0%, and Nintendo tumbled 4.3% following its much-anticipated Switch 2 announcement, which lacked substantial details to excite traders.
Picture: Nikkei 225 dips to 38,451.15, recovering from 38,061.15–with a bullish momentum building. Learn more on the VT Markets app.
Looking at the 15-minute chart, the Nikkei 225 closed at 38,451.15, down by 0.68% after an intraday low of 38,061.15. The index has faced consistent selling pressure, with price action largely below the key moving averages (5, 10, and 30-period), reflecting a bearish bias.
However, the MACD shows signs of recovery, with green histogram bars indicating building bullish momentum and the MACD line approaching a crossover with the signal line. The index is attempting to rebound but faces resistance near 38,500, while support holds firm at 38,061. Traders are watching for a breakout to determine the next trend.
Currency markets saw USD/JPY rise to 155.67, up from 155.17 late Thursday, adding to challenges for exporters as a stronger yen weighs on global competitiveness.
Investor attention remains on next week’s BOJ policy meeting, with speculation mounting around potential shifts in Japan’s monetary policy. Rising Japanese government bond yields, have raised concerns about borrowing costs, creating a cautious atmosphere for traders.
A more hawkish stance could intensify market volatility, while easing measures might help stabilise sentiment.
The combination of bond market dynamics and currency fluctuations has created a challenging backdrop for Japan’s equity market, especially for export-driven sectors. Traders are preparing for sharp market movements depending on the BOJ’s next policy decisions.
Official partners:
