The financial instrument other than the FX I trade [Fudō Shutarō]
According to Shutaro Fudou, who is investing not only in FX but also in virtual currencies, the foreign exchange market, commodity markets, and the Nikkei 225 influence one another, and their correlation changes depending on the market. Here, we will examine the linkage between the exchange rate and the Nikkei 225 as well as cryptocurrencies, so use this as a reference for your currency forecasts.
*This article is a reprint and editorial revision of an article from FX攻略.com June 2018 issue. Please note that the market information stated in the main text differs from current market conditions.
Profile: Shutaro Fudou (Fudoushuttarou)
Foreign exchange lecturer, author. Published seminar DVDs and interview CDs by a publisher. In addition to giving lectures at financial exchanges, securities exchanges, FX brokers, and investment trust companies, he also writes for magazines and serves as a school instructor for FX and stocks.
Official site：Shutaro Fudo's “Behind the News Coverage”
twitter：https://twitter.com/syutaro_fudo
FX and the Nikkei 225
When the yen strengthens, prices of exports from Japan rise overseas. Therefore, Japan’s exporting industries lose competitiveness on cost overseas, resulting in reduced profits. On the other hand, power companies and importers that import fuel become more profitable in a yen-strengthening phase. Since many companies that make up the Nikkei 225 (the 225 stock average) are in export-oriented sectors like automobiles and electronics, a stronger yen tends to push down the Nikkei 225.
