Technical Analysis:
JP225 is retracing down towards its 4H ob where we can look for buying opportunities with the confirmation of 15 min time frame. We have a good support below around 37730-38055. We can target the last upside swing if we get the opportunity to buy with the SL below our zone.
Fundamentals:
Japan's Nikkei share average fell more than 1% on Wednesday, slipping from multi-week highs hit in the previous session as profit-taking dominated, while investors awaited a fresh catalyst to determine the U.S. interest rate path.
The Nikkei NI225 was down 1.37% at 38,303.39 by the midday break.
The broader Topix TOPIX was down 1.22% at 2712.70.
With comments from Federal Reserve Chair Jerome Powell and a recent downside surprise in job growth reassuring markets that interest rate cuts may still be in store this year, the Nikkei rallied to a three-week high on Tuesday.
As investors looked for new signals to confirm the timing and size of potential cuts, U.S. stock markets meandered overnight, giving Japan's Nikkei little momentum to go on.
"The timing of U.S. interest rate cuts will greatly impact Japanese stocks," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
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