Reuters Poll: BOJ May Raise Rates to 1.0% in June, 1.25% by Year-End

GOOGL shares fell 2.4% in the last close and are trading below their 20-day moving average. Although the RSI is at 46.7, indicating a neutral zone, the MACD line is below the signal line and in negative territory, pointing to short-term weakness. Expectations of a BOJ rate hike could pressure technology stocks as a factor negatively affecting global risk appetite. The combination of weak technical indicators and macroeconomic news suggests the stock may continue its downward trend in the short term.

Expectations of a Bank of Japan (BOJ) interest rate hike could weigh on Japanese equities. The Nikkei 225 index closed 3.8% lower yesterday, with its RSI falling to 38, approaching oversold territory. The MACD line remains below the signal line and in negative territory, indicating weak short-term momentum. The 20-day moving average stands at 64,445, with the price closing below it, confirming a bearish trend. However, as the index has not yet entered oversold territory, further declines are likely.

Expectations of a Bank of Japan (BOJ) rate hike generally strengthen the Japanese yen (JPY), but USDJPY is currently trading at 160.40 with the Relative Strength Index (RSI) at 60, maintaining upward momentum. The price is trading above both the 20-day and 50-day moving averages, supporting a short-term bullish trend. Although the Moving Average Convergence Divergence (MACD) is just below the signal line, it remains in positive territory, indicating that the trend has not yet weakened. While the headline points to a rate hike, the market may have largely priced in this expectation, and the current technical structure supports an upward move. Therefore, the likelihood of continued upward movement in the short term is higher.

Expectations of a rate hike by the Bank of Japan (BOJ) could suppress global risk appetite, leading to outflows from emerging markets. In countries with high external financing needs, such as Turkey, the Turkish lira (TL) may face short-term pressure due to the increased appeal of the Japanese yen. Additionally, tightening global liquidity conditions could amplify selling pressure on Borsa Istanbul. However, the impact may remain limited if the BOJ does not provide a clear signal.