If the Bank of Japan abandons YCC, the yield of Japanese government bonds will rise by more than 1%

Fundamental analysis:

The Nikkei 225 index closed down 61.64 points, or 0.23%, at 26686.50 on Wednesday, May 25. If the Bank of Japan abandons the yield curve control (YCC), investors who call on the bank to do so will face the risk of instability in times of turmoil in the bond market.

Nikkei index jpn225 - 4-hour K-line chart shows:

Technical comments: it has been maintained in the broad oscillation upward movement of the Bollinger belt index channel for a long time. During this period, it has repeatedly spied the nodes of the upper and lower rail sections, and retreated to the middle and lower rail sections for consolidation in a short time. The Bollinger belt index shows a wide oscillation closing trend. In the middle, the MACD index hovers weakly near the 0 axis, and the RSI index is in the narrow consolidation near the 50 equilibrium line;

Long short turning point: 26748

Pressing position: 26895, 27047

Support position: 26527, 26380

Trading strategy: bullish above 26748, target 26895, 27047

Alternative strategy: bearish below 26748, targets 26527 and 26380

The above analysis is a personal point of view and is for reference only.