The US Treasury Secretary has made remarks encouraging yen appreciation, bringing the progress of a stronger yen and weaker dollar and a potential turning point for Japanese equities into focus. Attention is turning to future Japanese and US policy developments and movements in the yen exchange rate.
Views are spreading that pressure for yen appreciation will intensify following remarks by the US Treasury Secretary. The yen has recently appreciated from around ¥163 to ¥152–153, and its future course is now a key market concern.
Currency movements could also affect the equity market, and the Nikkei 225 is expected to move significantly depending on Japanese and US policy developments around the end of September. Views are spreading that the market will enter a new phase in late September.
The market is moving toward the apex of a triangle consolidation pattern, and the outcome around the end of September will depend on whether it breaks above the apex or breaks lower. As the yen appreciates, movements in domestic-demand stocks, shipping stocks and individual AI-related stocks may stand out.
The focus will now shift to major policy events, including the FOMC and the Bank of Japan's monetary policy meeting. Whether the Bank of Japan implements an additional rate hike, together with the course of US interest rates, is expected to determine how long yen appreciation continues.