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Japan 225 slides as traders price in a possible BoJ rate hike
Japanese government bond yields have climbed to multi-year highs as markets build expectations for tighter Bank of Japan policy ahead of the September 17 to 18 meeting.
The Japan 225 has come under increasing selling pressure as market participants raise expectations for a possible Bank of Japan rate hike at the September 17 to 18 meeting, according to analysis cited by Action Forex.
The same view suggests policymakers could be open to tightening faster than the roughly two rate increases per year implied in current guidance, with pricing indicating a high probability of a September move.
Rising Japanese government bond yields, which have moved to multi-year highs, are being linked to expectations for tighter policy, along with concerns about inflation and fiscal risks.
Technically, Action Forex points to a developing momentum shift, noting the index is trading around the point of control near 66,130, with 65,215 as the lower profile boundary, while 69,600 remains the key resistance level if buyers regain control.