Market Fundamental Analysis by RoboForex

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JP 225 forecast: the uptrend has shifted to a short-term downtrend

The JP 225 index continues its correction within a downtrend. The JP 225 forecast for today is negative.

JP 225 forecast: key trading points

• Recent data: Japan Tokyo CPI for August rose by 2.5% year-on-year
• Market impact: this result is positive for the Japanese stock market

Fundamental analysis

Tokyo’s Consumer Price Index (CPI) rose by 2.5% year-on-year in August 2025, in line with forecasts but lower than the previous reading of 2.9%. For the Japanese equity market, this result matters. Easing inflation signals reduced pressure on consumers and businesses, which may act as a positive factor for domestic demand. However, inflation remains above the Bank of Japan’s target (around 2.0%), supporting arguments for a cautious review of monetary policy.

For the JP 225, the sectoral impact is mixed. The consumer sector (retail, restaurants, and everyday goods) benefits from lower inflationary pressure, which supports purchasing power. Export-oriented companies may also gain if expectations of a softer Bank of Japan stance put downward pressure on the yen, improving competitiveness abroad. Conversely, the financial sector may face limits, as slower inflation reduces the likelihood of aggressive interest rate hikes, restraining bank margins.

RoboForex Market Analysis & Forex Forecasts

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

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The RoboForex Team

Edited 2 hours ago by RBFX Support