Japan 225 Analysis: Index Declines Amid Rising BoJ Rate Expectations

Japan 225 fell as traders increased bets on a Bank of Japan rate hike at the 17–18 September meeting. Rising Japanese government bond yields, now at multi-year highs, reinforced expectations of tighter policy and added pressure on equities. Technically, the index’s uptrend from late July has broken, with heavier volume accompanying the decline and momentum shifting lower. The Japan 225 is trading near the point of control around 66,130, with downside risks toward 65,215 and then 63,015 if support fails. A recovery above the current profile could reopen the path toward the 69,600 high. Overall, the outlook is mixed to bearish in the near term, with the index sensitive to BoJ policy expectations, yen moves, inflation data, and bond yields.