Potential for a near-term bottom (Higan bottom) at 26,632 yen on Thursday, March 16
In this week's forecast, the government's and financial authorities' responses to the potential collapse of financial institutions and worsening performance have been swift, and the immediate financial anxiety has retreated significantly.
Chart-wise, after the drop to 26,632 yen on Thursday the 16th last week, the 26,000 yen level was considered a bottom, and if so, it was assumed to be a watershed for a turning point and a rise from there.
In the end, concerns rose regarding the subsequent bank failures of regional banks and the financial instability of Credit Suisse, but on Tuesday the 21st, a holiday in Japan, U.S. Treasury Secretary Janet Yellen stated that full deposit insurance would be provided if the financial crisis worsened, and UBS announced it would acquire Credit Suisse, which led European and U.S. stocks to rise across the board, and accordingly today’s Nikkei average also rose across the board.
Today's rise was a rebound from a sharp decline, and while the financial system anxiety has eased, it has not been eliminated.
The adverse effects of the long-standing tightening cycle are beginning to appear, and going forward, while there will be attempts to rebound, any impetus affecting the economy or corporate performance could arise from some trigger. For buying, wait sufficiently for the decline and avoid investing at a half-hearted point. Today, the intraday high reached the 27,500 yen range, and the closing price was up 520 yen at 27,466 yen.
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