{"id":23177,"date":"2025-06-18T09:46:23","date_gmt":"2025-06-18T09:46:23","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=23177"},"modified":"2025-06-18T09:46:23","modified_gmt":"2025-06-18T09:46:23","slug":"nikkei-hits-4-month-high-on-weak-yen","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/it-eu\/analysis\/nikkei-hits-4-month-high-on-weak-yen\/","title":{"rendered":"Nikkei hits 4-month high on weak yen"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/Untitled-design-11-1024x536.png\" alt=\"\" class=\"wp-image-23179\" srcset=\"https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/Untitled-design-11-1024x536.png 1024w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/Untitled-design-11-300x157.png 300w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/Untitled-design-11-768x402.png 768w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/Untitled-design-11-500x262.png 500w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/Untitled-design-11-400x209.png 400w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/Untitled-design-11-350x183.png 350w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/Untitled-design-11-200x105.png 200w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/Untitled-design-11.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Japanese markets gained strength as a weaker yen and positive investor sentiment boosted equities and commodities. Despite some cautious economic data, overall momentum remains upbeat with potential for further gains.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Japanese equities surge on softer yen and strong risk appetite<\/strong><\/h2>\n\n\n\n<p>Japanese stocks surged notably on Wednesday, with the Nikkei 225 closing at 38,832.65 \u2013 its highest level in four months \u2013 driven by a softer yen and renewed investor confidence in risk assets.<\/p>\n\n\n\n<p><\/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 Bank of Japan\u2019s decision to hold interest rates and slow its withdrawal from the bond market was widely expected and should help reassure investors, though there will be plenty of interest in Governor Ueda\u2019s press conference, analysts said. <a href=\"https:\/\/t.co\/jH4vjHDbii\">https:\/\/t.co\/jH4vjHDbii<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1934832462271545716?ref_src=twsrc%5Etfw\">June 17, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The index climbed 1.7% during the session, gaining momentum in the afternoon after breaking above the 38,140.65 intraday support. The Nikkei peaked at 38,904.65 before slightly retreating to close near its highs.<\/p>\n\n\n\n<p>This bullish sentiment extended to commodity-linked markets. Osaka Exchange rubber futures for November delivery rose 2.69%, settling at 305 yen per kilogram, reaching an intraday peak of 305.6 yen, the highest since late May.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Weather and currency trends support commodity and equity gains<\/strong><\/h2>\n\n\n\n<p>Weather disruptions continue to underpin the rally, as heavy rainfall hampers rubber tapping operations in Japan and major producers like Thailand.<\/p>\n\n\n\n<p>Flash flood warnings issued for 20\u201323 June in Thailand have heightened concerns over potential crop damage and near-term supply constraints.<\/p>\n\n\n\n<p>Currency moves further boosted Japanese equities. The yen slid to a one-week low of 145.445 against the US dollar, enhancing the appeal of Japanese stocks to foreign investors.<\/p>\n\n\n\n<p>The inverse relationship between the yen and the Nikkei remains intact, with a weaker yen supporting exporters and attracting overseas demand for yen-denominated assets.<\/p>\n\n\n\n<p>However, Japan\u2019s recent macroeconomic data added a cautious note. Exports declined in May for the first time in eight months, largely due to lower automobile shipments.<\/p>\n\n\n\n<p>Ongoing US tariffs are pressuring Japanese car exports, raising concerns about potential weakening in rubber demand if manufacturing activity slows.<\/p>\n\n\n\n<p>Despite this, immediate supply tightness coupled with speculative buying appears to be the dominant factor driving prices currently.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Technical analysis: Momentum and resistance levels to watch<\/strong><\/h2>\n\n\n\n<p>The Nikkei 225 demonstrated strong gains during the latter part of Wednesday\u2019s trading, closing at 38,832.65 \u2013 up more than 1.7% from the opening level.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"443\" src=\"https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/image-19-1024x443-1.jpeg\" alt=\"\" class=\"wp-image-23178\" srcset=\"https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/image-19-1024x443-1.jpeg 1024w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/image-19-1024x443-1-300x130.jpeg 300w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/image-19-1024x443-1-768x332.jpeg 768w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/image-19-1024x443-1-500x216.jpeg 500w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/image-19-1024x443-1-400x173.jpeg 400w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/image-19-1024x443-1-350x151.jpeg 350w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/06\/image-19-1024x443-1-200x87.jpeg 200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Buyers drive late-session rally toward key resistance zone, as seen on the <a href=\"https:\/\/apps.apple.com\/au\/app\/vt-markets-online-trading\/id1372647263?mt=8\" title=\"VT Markets app\">VT Markets app<\/a>.<\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>After a period of consolidation through much of 17 and early 18 June, the index broke decisively above the 38,140.65 support, triggering a sharp rally that hit an intraday high of 38,904.65 before easing slightly near the close.<\/p>\n\n\n\n<p>Technical indicators confirm the bullish momentum. The MACD histogram displayed several robust green bars, signalling upward pressure, although the MACD line\u2019s slope is flattening, suggesting possible short-term fatigue.<\/p>\n\n\n\n<p>Price action is approaching resistance in the 38,850 to 38,900 range, a zone that has previously capped advances.<\/p>\n\n\n\n<p>Meanwhile, the 5-, 10-, and 30-period exponential moving averages (EMAs) remain bullishly aligned and sharply diverging, reinforcing the strength of the current trend.<\/p>\n\n\n\n<p>Given persistent adverse weather forecasts and prevailing risk-on sentiment in Tokyo, the Nikkei and rubber futures may continue to face upward pressure through the week.<\/p>\n\n\n\n<p>Traders should closely monitor evolving weather conditions and <a href=\"https:\/\/www.reuters.com\/business\/view-investors-react-boj-decision-stand-pat-interest-rates-2025-06-17\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"Bank of Japan policy announcements\">Bank of Japan policy announcements<\/a>, as these factors could trigger either a pause or acceleration in price movements.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Click <a href=\"https:\/\/www.vtmarkets.net\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\" title=\"here\">here<\/a> to open account and start trading.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japanese markets gained strength as a weaker yen and positive investor sentiment boosted equities and commodities. Despite some cautious economic data, overall momentum remains upbeat with potential for further gains. Japanese equities surge on softer yen and strong risk appetite Japanese stocks surged notably on Wednesday, with the Nikkei 225 closing at 38,832.65 \u2013 its <a href=\"https:\/\/www.vtmarkets.com\/it-eu\/analysis\/nikkei-hits-4-month-high-on-weak-yen\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":102,"featured_media":23179,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-23177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/posts\/23177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/users\/102"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/comments?post=23177"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/posts\/23177\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/media\/23179"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/media?parent=23177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/categories?post=23177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/tags?post=23177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}