BOJ: Global AI Demand Could Make Inflation Persistent

GOOGL shares have risen 6.4% over the past 24 hours, with the RSI at 75.6, indicating overbought conditions. The MACD is above the signal line and positive, pointing to strong upward momentum. News headlines suggest that global AI demand could make inflation more persistent, which may support Alphabet's potential to generate revenue from its AI investments. However, the overbought RSI increases the risk of a short-term correction, so I view the upside with moderate confidence. The price is well above the SMA20 and SMA50, indicating a strong trend, but overheating signals warrant caution.

The Bank of Japan's (BOJ) statement that artificial intelligence demand could make inflation persistent points to robust economic activity in Japan. The Nikkei index has gained 4% over the last 24 hours, with the RSI at 53 in neutral territory and the MACD showing positive momentum above its signal line. The price is trading above the SMA20 and SMA50, supporting a short-term uptrend. However, persistent inflation could increase the likelihood of a BOJ rate hike, creating some cautious optimism in the market. In the short term, upward movement may continue, but an excessive rally should be avoided.

The Bank of Japan's (BOJ) statement that artificial intelligence (AI) demand could make inflation more persistent may weaken global expectations for interest rate cuts and put upward pressure on bond yields. This could heighten valuation concerns, particularly in technology stocks, although the strong momentum in AI investments may continue to support risk appetite. For Turkish markets, the direct impact is likely limited, but potential fluctuations in global risk sentiment and rising interest rates in developed countries could pressure emerging market assets. Overall, the market is expected to approach such statements with caution, viewing them as a factor that increases volatility rather than one that sets a clear direction.

The Bank of Japan's statement that artificial intelligence demand could make inflation persistent may strengthen expectations for interest rate hikes in Japan and support the JPY. Technical indicators also support this view: RSI at 38 is in the oversold territory, MACD is below the signal line, and the price is below both the SMA20 and SMA50. In the short term, downward pressure on USDJPY may continue, but given the pace of the current decline, a gradual pullback is more likely than a sharp move.