The market moved more sharply than expected. The focus is on views of past yield and share price levels, as well as movements in the yen and dollar selling after intervention by the government and the Bank of Japan.
It has been pointed out that the magnitude of price movements tends to be underestimated when forecasting market trends. In the past, despite the 10-year government bond yield being on an upward trend, it was not generally expected to rise well above 3%. Similarly, when the Nikkei 225 was trading around ¥50,000, expectations that it would exceed ¥70,000 were held by only a minority.
Against this backdrop, attention is also turning to the outlook for the foreign exchange market. The dollar-yen exchange rate changed after the government and the Bank of Japan intervened by buying yen and selling dollars, and the future direction is being closely watched.