{"id":40200,"date":"2026-01-27T16:24:08","date_gmt":"2026-01-27T08:24:08","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=40200"},"modified":"2026-01-27T16:24:08","modified_gmt":"2026-01-27T08:24:08","slug":"nikkei-rebounds-as-yen-softens","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/nikkei-rebounds-as-yen-softens\/","title":{"rendered":"Nikkei Rebounds as Yen Softens"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image_fx-86-1024x559.png\" alt=\"\" class=\"wp-image-20961\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Nikkei 225 rose <strong>0.85%<\/strong> to close at <strong>53,333.54<\/strong>.<\/li>\n\n\n\n<li>Chip stocks advanced, with Advantest up <strong>5.85%<\/strong> and Tokyo Electron rising <strong>2.53%<\/strong>.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Japan\u2019s Nikkei share average closed higher on Tuesday, recovering from early caution as technology stocks extended their advance.<\/p>\n\n\n\n<p>The index rose <strong>0.85%<\/strong> to <strong>53,333.54<\/strong>, while the broader <strong>Topix<\/strong> ended <strong>0.31%<\/strong> higher at <strong>3,563.59<\/strong>.<\/p>\n\n\n\n<p>The session opened on a guarded note. Traders closely tracked the yen, which had spiked against the US dollar on Friday and climbed to a more than <strong>two-month high<\/strong> overnight.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The yen extended its advance against the dollar amid heightened alert of Japanese intervention to halt the currency\u2019s recent slide. <a href=\"https:\/\/t.co\/CKaUmkTFxY\">https:\/\/t.co\/CKaUmkTFxY<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2015546235050930422?ref_src=twsrc%5Etfw\">January 25, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>That move initially weighed on equities, particularly exporters, as a stronger yen tends to erode overseas earnings when repatriated.<\/p>\n\n\n\n<p>Sentiment improved later in the day as the <a href=\"https:\/\/www.vtmarkets.com\/analysis\/yen-weakens-as-boj-delivers-expected-hold\/\" target=\"_blank\" rel=\"noopener\" title=\"\">yen weakened<\/a> into the close. This shift eased pressure on stocks and allowed buyers to step back into the market, lifting the Nikkei off its intraday lows.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Asia-Pacific markets set to rise ahead of Bank of Japan decision <a href=\"https:\/\/t.co\/twqTyhjKvW\">https:\/\/t.co\/twqTyhjKvW<\/a><\/p>&mdash; CNBC (@CNBC) <a href=\"https:\/\/twitter.com\/CNBC\/status\/2014489068533334476?ref_src=twsrc%5Etfw\">January 23, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>A cautious forecast suggests Japanese equities may remain sensitive to currency swings in the near term, especially as political and policy signals evolve.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Yen Moves Drive Late-Session Support<\/h2>\n\n\n\n<p>Speculation around currency intervention played a key role in shaping market behaviour. Comments from Japan\u2019s prime minister and a senior currency diplomat fuelled talk of potential coordination with US authorities, adding volatility to the yen.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Prime Minister Sanae Takaichi said that while a hypothetical US-China clash wouldn\u2019t immediately mean Japan will take military action, it will respond within legal limits should the US be attacked during a joint operation <a href=\"https:\/\/t.co\/BydVNwJuiF\">https:\/\/t.co\/BydVNwJuiF<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2016041517446517136?ref_src=twsrc%5Etfw\">January 27, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>As the yen softened toward the end of the session, equities found support. Market participants pointed to the currency\u2019s retreat as a direct catalyst for the rebound in share prices, particularly across sectors with large export exposure.<\/p>\n\n\n\n<p>If the yen continues to fluctuate sharply, Japanese equities may see further intraday swings, with traders quick to adjust positioning in response to currency headlines.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technology and Chips Lead Gains<\/h2>\n\n\n\n<p>Technology stocks provided the main lift to the Nikkei. Chip-related shares outperformed, with <strong>Advantest<\/strong> jumping <strong>5.85%<\/strong> and <strong>Tokyo Electron<\/strong> rising <strong>2.53%<\/strong>.<\/p>\n\n\n\n<p>The strength in these names reflected broader regional momentum, as South Korea\u2019s <strong>KOSPI<\/strong> rallied to a new peak.<\/p>\n\n\n\n<p>The advance in Korean equities came despite President Donald Trump\u2019s renewed threat to raise tariffs on autos and other imports from South Korea.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">President Trump said he was increasing tariffs on US imports of South Korean autos and other goods to 25%, after criticizing the Asian nation&#39;s legislature for failing to enact a trade deal with Washington <a href=\"https:\/\/t.co\/Ja0MDflERC\">https:\/\/t.co\/Ja0MDflERC<\/a> <a href=\"https:\/\/t.co\/gbteEZHHtc\">pic.twitter.com\/gbteEZHHtc<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/2016043621557100739?ref_src=twsrc%5Etfw\">January 27, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>That resilience helped underpin sentiment toward Japanese semiconductor names, which often move in tandem with regional peers.<\/p>\n\n\n\n<p>A cautious outlook suggests tech leadership may persist as long as global demand for semiconductors remains firm, though geopolitical trade risks could reintroduce volatility.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The <strong>Nikkei 225<\/strong> surged to <strong>53,193.22<\/strong>, gaining <strong>+694.07 points (+1.32%)<\/strong>, but recent candles reveal a sharp pullback from the session high of <strong>53,373.22<\/strong>.<\/p>\n\n\n\n<p>After peaking early, prices slid into a steep correction, bottoming at <strong>53,140.22<\/strong> before attempting a mild rebound.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-27-1024x474.jpg\" alt=\"\" class=\"wp-image-40201\" \/><\/figure>\n\n\n\n<p>Momentum indicators suggest some recovery as the price reclaims short-term moving averages (MA5 and MA10). However, the decline was accompanied by strong red volume bars, hinting at profit-taking pressure.<\/p>\n\n\n\n<p>Buyers will need to hold above <strong>53,190<\/strong> and reclaim the<strong> 53,235\u201353,248<\/strong> zone (MA20\/30) to sustain the uptrend.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Short-Term Outlook<\/h2>\n\n\n\n<p>The Nikkei\u2019s ability to finish higher after early weakness reflects a market still willing to buy dips, particularly in technology shares.<\/p>\n\n\n\n<p>However, the backdrop remains complex with currency volatility, <a href=\"https:\/\/t.co\/cAwAnvTssL\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">election dynamics<\/a>, and global trade risks all in play.<\/p>\n\n\n\n<p>Near-term direction is likely to hinge on the yen\u2019s trajectory and further signals around policy coordination or intervention.<\/p>\n\n\n\n<p>Continued softness in the yen could support equities, while renewed strength could reintroduce pressure, especially for export-heavy sectors.<\/p>\n\n\n\n<p><strong>Learn more about trading <a href=\"https:\/\/www.vtmarkets.com\/indices\" target=\"_blank\" rel=\"noopener\" title=\"\">Indices<\/a> on <a href=\"https:\/\/www.vtmarkets.com\/trade-now\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets<\/a> today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japan\u2019s Nikkei steadies after early caution, with tech stocks lifting as the yen pares gains amid election focus.<\/p>\n","protected":false},"author":64,"featured_media":20961,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[11,30],"class_list":["post-40200","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices","tag-nikkei"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=40200"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40200\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/20961"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=40200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=40200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=40200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}