Snapshot: The Nikkei 225 is down 1.18% at 64999, weighed down by profit-taking after its recent surge to record highs. BOJ Governor Ueda’s recent remarks regarding rising inflationary pressures, while not explicitly hinting at an immediate rate hike, continue to be digested by the market. The next catalyst is Ueda’s speech at 09:00 JST.
- Watch for support around 64,500, a break below which could signal further downside.
- Rising geopolitical tensions, particularly any escalation in the Middle East, pose a risk to sentiment.
Bias into NY: Cautiously bearish, as the Nikkei’s pullback could extend if US yields continue to consolidate, preventing the cross-currency spread from widening further. A breach of 64,500 would open the door to further declines.