Today’s session on the Japanese equity market is marked by a combination of several factors supporting an improvement in sentiment after the earlier sell-off.
- Wall Street rebound: Nasdaq 100 futures are up around 1%, signaling improved sentiment after last week’s declines in tech stocks. In Japan, earlier selling pressure is easing, especially in the semiconductor and AI sectors.
- Decline in oil prices: Brent crude is down more than 2%, helped by a partial easing of US sanctions on Russia. Lower oil prices reduce inflation pressure and soften expectations for global interest rates.
- Buying-up losses: After last week’s sharp drop, investors are closing short positions in index futures. Additional support comes from interest in defensive stocks, which partially offsets weakness in the technology sector.
However, the scale of the rebound is still limited by ongoing concerns about bond yields and AI investment profitability.
OIL (D1)
The 100 and 200 EMAs point to continued upward momentum, although the RSI (14) is already starting to move into levels interpreted as “overbought.” Fibonacci levels drawn from the most recent upswing indicate that the latest highs are a likely upper boundary for a very broad consolidation channel. Source: xStation5
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