News

The JP 225 stock index resumed its upward movement after a correction and reached a new all-time high. The JP 225 forecast for today is positive.

JP 225 forecast: key trading points

• Recent data: Japan’s national core Consumer Price Index came in at 2.9% in September
• Market impact: the effect on the Japanese equity market is moderately negative

JP 225 fundamental analysis

Japan’s annual national core inflation accelerated to 2.9%, confirming that inflation remains above the Bank of Japan’s 2.0% target. For the stock market, this is a two-sided signal. On the one hand, stable prices support revenues in sectors with strong pricing power, such as premium consumer goods and services. On the other hand, they increase the likelihood of a gradual monetary policy normalisation, which could lead to higher JGB yields and an increased discount rate. An additional risk is a stronger yen if market participants raise expectations for tighter monetary policy.

For the JP 225 index, the overall impact is neutral to mildly negative in the short term. Expectations of a more hawkish tone from the Bank of Japan may drive up local rates and yen volatility, often triggering a rotation from export-oriented sectors (automotive, electronics, industrial machinery) to domestically focused and defensive segments. However, if the BoJ maintains a cautious stance and the yen does not strengthen significantly, the report will have a moderate impact.

JP 225 technical analysis

The JP 225 index has reached a new all-time high, although a short-term correction may follow. The global trend remains bullish. The support level is located at 48,425.0, while the resistance at 49,770.0 has been broken.

The following scenarios are considered for the JP 225 price forecast:

• Pessimistic JP 225 scenario: a breakout below the 48,425.0 support level could send the index down to 46,370.0
• Optimistic JP 225 scenario: if the price consolidates above the previously breached resistance level at 49,770.0, the index could climb to 52,720.0

Summary

Inflation in Japan at 2.9% confirms persistent price pressures above the Bank of Japan’s target, increasing the risk of further monetary tightening. Rising government bond yields and potential yen appreciation create a moderately negative short-term backdrop for the JP 225, with likely pressure on exporters and rotation towards defensive sectors. The next upside target for the JP 225 could be 52,720.0.

Open Account

US Trade Secretary Bessent Says China Ready to Deal on Tariffs / Rare Earths; Stocks Soar, Major Indices in USA, Korea, Japan, Europe Roar to New Record Highs; Soybeans Set for 3-Month Breakout

Trump is still crying about an ad that clearly captured how Ronald Reagan felt about tariffs. This is surely just some kind of squeeze to try to get a better tariff deal.

Canada was caught, red handed, putting up a fraudulent advertisement on Ronald Reagan’s Speech on Tariffs. The Reagan Foundation said that they, “created an ad campaign using selective audio and video of President Ronald Reagan. The ad misrepresents the Presidential Radio Address,” and “did not seek nor receive permission to use and edit the remarks. The Ronald Reagan Presidential Foundation and Institute is reviewing its legal options in this matter.” The sole purpose of this FRAUD was Canada’s hope that the United States Supreme Court will come to their “rescue” on Tariffs that they have used for years to hurt the United States. Now the United States is able to defend itself against high and overbearing Canadian Tariffs (and those from the rest of the World as well!). Ronald Reagan LOVED Tariffs for purposes of National Security and the Economy, but Canada said he didn’t! Their Advertisement was to be taken down, IMMEDIATELY, but they let it run last night during the World Series, knowing that it was a FRAUD. Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now. Thank you for your attention to this matter!

The Ronald Reagan Foundation was taken over by a MAGA board. The thing is, this is only going to bring more attention to the ad and Reagan's strong anti-tariff views, which he spoke of many times.

The market didn't care about him breaking off talks on Friday and isn't likely to care about this either. Notably, he doesn't really specify which tariffs he's talking about here. The USMCA tariffs are zero but a small portion of trade not covered by that is paying anywhere from 15-50%.

See for yourself how Reagan felt about tariffs:

Here's the ad:

The NZD/USD pair gathers strength to near 0.5730 during the early Asian session on Monday. The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) after the release of consumer price inflation data.