FxWirePro: Nikkei225 likely to rise by another 6.5 percent

As the global central banks return to their policy easing tool, with major central banks either cutting or forecasting rate cuts, we expect the global equities to move higher. Last week, despite an early close and holiday over 4th of July Independence, the U.S. benchmark stock index, S&P500 closed at a record high, just shy of 3000 resistance barrier.

The Japanese benchmark Nkkei225 is likely to follow suit and move higher as the Bank of Japan (BoJ) remains open to further easing via rate cuts. We expect the equities to benefit from a dovish turn in the global monetary policy.  

Trade idea:

• Calculations suggest that JPN225 (Contract for Difference of Nkkei225), which is currently trading around 21600 area, would rise by another 6-7 percent and test 23000 area.