The Nikkei is continuing to consolidate, while market attention is focused on next week's events, including the US FOMC and the Bank of Japan meeting. On the charts, the 75-day and 26-week moving averages are in focus.
The Tokyo market has continued to trade in a similar pattern from day to day, while the Nikkei remains range-bound without surpassing its August rebound high. The momentum seen during the advance in mid-August has weakened, and trading continues around the 75-day moving average.
The weekly chart broke below the 13-week moving average in the third week of August and is approaching the 26-week moving average below. The Nikkei's next move is expected to be determined by a breakout from the triangle consolidation pattern.
Next week, US FOMC proceedings and Japanese political and monetary policy events will overlap. Market participants are expected to focus on the direction of US rate cuts and hikes, as well as the Bank of Japan's monetary policy meeting.
The yen may move toward appreciation, while a rise in the US 10-year Treasury yield and movements in oil prices may also affect the market. Depending on next week's developments, the Nikkei may test the 26-week moving average. Attention should also be paid to dividend and stock-split developments ahead of the 28th, the last cum-rights date.