Against a backdrop of an autumn stock rally, the Nikkei Average is said to be aiming to retest the ¥70,000 level, with three conditions presented in the article.
Expectations for an autumn rise in stock prices are growing, with three conditions identified for the Nikkei Average to make another run at ¥70,000. These conditions can be interpreted as factors that will influence market trends.
The September Federal Open Market Committee (FOMC) is being described as “live,” while the release of increasingly important inflation data is becoming a focus of market attention. Depending on developments in financial conditions, attention is turning to the direction of market movements in the near future.
While some observers see the situation as resembling the period before Black Monday, expectations are building for moves toward establishing a floor under stock prices.
The yen is expected to trade at around ¥154 to the dollar at year-end, and an acceleration in the pace of rate hikes could affect the yen exchange rate.