CHFJPY 5th MARCH 2023

The correlation between the Nikkei index and the Japanese Yen on the daily timeframe can fluctuate depending on market conditions and fundamental factors affecting both. However, in general, there is an inverse correlation (negative correlation) between the two.

NIKKEI225 5th MARCH 2023
JAPAN225 5th MARCH 2023


This can be seen in situations where the yen strengthens, the Nikkei tends to weaken, and vice versa. This happens because the strength of the yen can affect the performance of Japanese exporting companies, which are the main sectors represented in the Nikkei index. If the high value of the yen makes Japanese export products more expensive for foreign markets, then the performance of Japanese exporting companies may be affected and this may result in a decline in share prices in the Nikkei index.

However, it is important to remember that the correlation between the Nikkei and the Japanese Yen is not always consistent or stable, depending on various factors including global market conditions and Japan's domestic economic situation. Therefore, it is important for traders and investors to constantly monitor their movements and the factors that influence them in order to make informed trading decisions.
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