Nikkei 225 Declines Toward 50,000 Amid Mixed Corporate Earnings and Bond Yield Growth

Today, industrial conglomerate Mitsubishi Heavy Industries, Ltd. is set to report revenue of around 1.29 trillion yen, up from 1.19 trillion yen a year earlier, and earnings per share of 21.04 yen versus 13.33 yen. Automotive giant Honda Motor Co., Ltd. expects revenue of 5.31 trillion yen and earnings per share of 35.94 yen, compared with 5.39 trillion yen and 21.44 yen, respectively, in the prior period. Meanwhile, electrical equipment producer Fujikura Ltd. forecasts 268.07 billion yen in revenue and 107.17 yen per share, up from 229.21 billion yen and 34.88 yen a year earlier.

Government bond yields show mixed movements: the 10-year yield rose slightly to 1.675% from 1.653% last week, the 20-year yield climbed to 2.619% from 2.578%, and the 30-year yield increased to 3.099% from 3.065%.

The top gainers in the index include Recruit Holdings Co., Ltd. (+15.28%), Kikkoman Corp. (+10.11%), Mazda Motor Corp. (+6.77%), and Chugai Pharmaceutical Co., Ltd. (+6.53%). Among the top decliners are Kanadevia Corp. (–19.62%), Ajinomoto Co., Inc. (–16.17%), and Taiyo Yuden Co., Ltd. (–16.11%).

Support and Resistance Levels

On the daily chart, the price continues to move toward the support line of the ascending channel with dynamic boundaries between 53,400.0 and 47,700.0.

Technical indicators suggest the bullish signal may weaken further: the AO histogram is forming new downward bars, while the fast EMAs on the Alligator indicator are converging toward the signal line, narrowing the range of fluctuations.

Support levels: 48,800.0, 46,600.0.

Resistance levels: 51,000.0, 53,400.0.

Trading Scenarios and NI 225 Forecast

If the price reverses and continues to decline, consolidating below the 48,800.0 support level, short positions will become relevant with a target of 46,600.0 and a stop-loss at 49,500.0. Implementation period: 7 days or more.

If the price continues to rise and consolidates above the 51,000.0 resistance level, long positions will become relevant with a target of 53,400.0 and a stop-loss at 50,000.0.