Nikkei 225 Falls 1% on Strong Yen and Rate HikesToday, Asian stock markets presented mixed results, driven by expectations of lower interest rates in the United States, with a strong emphasis on the Japanese market, where the Nikkei 225 and also the TOPIX fell by almost 1%. This decline was mainly due to the strength of the yen, which negatively affected export and technology stocks. The pressure on the Nikkei 225 reflects expectations that the Bank of Japan will raise interest rates, a move that could continue to weaken the index. Meanwhile, other Asian markets rose, driven by expectations of lower interest rates, following gains on Wall Street. However, in China, indices fell on concerns about the economic slowdown and liquidity withdrawal by the People's Bank of China.
Currently the price is in the area of 37,980.44 slightly below the checkpoint (POC) 38,614.40 points. The current trading zone is in the range between 39,450 and 36,650 points. It has recovered the 2nd support that was fractured on August 2, it remains to be seen if the evolution of the yen negatively affects the index in the coming weeks causing the index to fall to the lower part of the range again or continue its recovery towards the highs.
Ion Jauregui - Analyst Activtrades
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