Nikkei 225 (JPN225)

📜 History

The index was created by Nihon Keizai Shimbun, Japan's main financial newspaper, which began publishing the Nikkei Stock Average in 1950, with data dating back to 1949. The number of components was set at 225 in 1971. The index is price-weighted, so high-priced stocks have more influence on it. It reached a record close of about 38,915 in December 1989, at the peak of Japan's asset bubble. The bubble burst in 1990, and by the 2003 low the index had fallen about 80 percent, starting a long period of stagnation. The 2008 global financial crisis and the 2011 Tohoku earthquake and tsunami caused further sharp drops. The index regained its 1989 record in February 2024.

⚙️ What moves the price

• →Bank of Japan monetary policy, including interest rate decisions and bond yield policy
• →USD/JPY exchange rate: a weaker yen usually supports exporters and the index
• →Overnight moves on Wall Street and the Nasdaq, which often set the tone at the Tokyo open
• →Japanese economic data such as GDP, CPI, the BoJ Tankan survey and trade figures
• →Global risk sentiment and moves in heavyweight stocks such as Fast Retailing, Tokyo Electron and SoftBank Group

Character

• •Often moves opposite to the yen: USD/JPY up — Nikkei up.
• •Active during the Tokyo session and again when Europe and New York open.
• •Sensitive to the Bank of Japan and to the mood on Wall Street.

When to trade

• ✅Tokyo session and the European open.
• ✅Hourly trends that agree with the direction of USD/JPY.

When not to trade

• ⛔Bank of Japan decisions and Japanese government interventions in the yen.
• ⛔Sharp sell-offs on Wall Street the night before — the open may gap.

Our verified setups

Latest closed signals

• SELL · H1 · TP515/10+$198
• BUY · H1 · SL14/10−$103
• SELL · H1 · BE09/10−$1
• SELL · H1 · TP507/10+$198
• SELL · H1 · BE07/10−$2

📊 Weekly report

Simulation: $10,000 deposit, $100 risk per trade. Pips — price movement; $ — result at fixed risk.