{"id":14338,"date":"2024-09-24T06:41:05","date_gmt":"2024-09-24T06:41:05","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14338"},"modified":"2025-02-16T10:55:27","modified_gmt":"2025-02-16T10:55:27","slug":"forex-market-analysis-24-september-2024","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/tr-mena\/analysis\/forex-market-analysis-24-september-2024\/","title":{"rendered":"Forex market analysis: 24 September 2024"},"content":{"rendered":"\n

The Nikkei 225 jumped to a three-week high as Japanese markets reopened after a long holiday, helped by strong gains in the US market. However, after reaching its highest level since early September, the index pulled back slightly as some traders decided to sell. This cautious approach was influenced by concerns about US stock performance and the Federal Reserve’s decisions on interest rates.<\/p>\n\n\n\n

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Nikkei hits three-week high<\/strong><\/h1>\n\n\n\n

The Nikkei surged to a three-week high after Japan’s extended holiday break, spurred by Wall Street\u2019s strong performance. The index jumped 1.5% to 38,293.34 in early trading, briefly touching 38,338.65\u2014its highest level since 3 September.<\/p>\n\n\n\n

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Nikkei trading at 38033.85 on the VT Markets app<\/a>.<\/figcaption><\/figure>\n\n\n\n

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However, the Nikkei 225 closed at 38,026.15, slightly retreating from these highs. After reaching an intraday peak of 38,513, the index encountered selling pressure, pulling it down towards 38,026. The MACD on vtmarkets.com shows weakening momentum, with a shrinking histogram and a flat signal line, indicating potential consolidation or further decline.<\/p>\n\n\n\n

Additionally, the 5, 10, and 30-period moving averages suggest a bearish trend, particularly after the price dropped below the 5-period average.<\/p>\n\n\n\n

Market sentiment remained cautious due to concerns about US stock performance and the Federal Reserve\u2019s rate decisions. The Nikkei 225\u2019s closing at 38,026.15 reflects this cautious outlook. After hitting an intraday high of 38,513, selling pressure led to the downward move.<\/p>\n\n\n\n

The MACD indicator shows declining momentum, with the signal line flattening, pointing towards possible consolidation or a further pullback. The 5, 10, and 30-period moving averages reinforce a downward trend, especially after the index fell below the 5-period average.<\/p>\n\n\n\n

Investors are closely watching developments in the US, where gains have been modest, with lingering uncertainty around the long-term effects of the Federal Reserve\u2019s recent rate cut. If the Nikkei breaks below the 37,921 support level, further bearish movement is likely, while resistance at 38,666 remains crucial for any recovery attempts.<\/p>\n\n\n\n

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Bank of Japan maintains steady policy<\/strong><\/h1>\n\n\n\n

Meanwhile, the Bank of Japan (BOJ) kept its interest rates unchanged last Friday, maintaining a cautious outlook. BOJ Governor Kazuo Ueda emphasised that the central bank would take its time in evaluating the global economic landscape before making any policy shifts. This dovish stance has reassured markets that the BOJ is not in a rush to tighten monetary policy.<\/p>\n\n\n\n

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Bank of Japan Governor Kazuo Ueda submitted a document to a government panel suggesting that the central bank will continue to raise interest rates if the economy and prices perform as expected by the BOJ https:\/\/t.co\/M4j3ODEo0B<\/a><\/p>— Bloomberg Markets (@markets) September 3, 2024<\/a><\/blockquote>