JP 225 forecast: the index entered a downward trend

18.12.2025

The JP 225 stock index shifted into a downward trend after falling by 4.5%. The JP 225 forecast for today is negative.

JP 225 forecast: key takeaways

  • Recent data: Japan Industrial Production MoM increased by 1.5%
  • Market impact: the effect for the Japanese equity market is moderately positive

JP 225 fundamental analysis

Japan Industrial Production MoM printed at +1.5% for the month, compared with a forecast of +1.4%, following +2.6% in the previous month. This means industrial output grew slightly faster than expected, although the pace of growth slowed compared with the prior period. Rising production usually signals stronger order inflows, higher capacity utilisation, and an improved chance for companies to deliver solid revenue and profit growth in the coming quarters.

For the JP 225 index, the current data is generally positive. The index includes many large companies linked to industry, technology, supply chains, and exports. For these firms, higher production signals that demand and output remain intact, meaning the baseline profit outlook stays relatively healthy. This can support the index, especially if there is no simultaneous deterioration in orders or foreign trade data.

Japan Industrial Production MoM: https://tradingeconomics.com/japan/industrial-production-mom
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

Japan Industrial Production MoM: https://tradingeconomics.com/japan/industrial-production-mom

JP 225 technical analysis

The JP 225 index trades in a downward trend. The support zone at 50,140.0 has been broken. The nearest resistance is located around 50,855.0. After the support break, the pace of the decline accelerated. The next potential downside target lies near 47,975.0.

Forecast scenarios for the JP 225 price:

  • Bearish scenario: if prices remain below the previously broken support at 50,140.0, the index may fall to 47,975.0
  • Bullish scenario: if resistance at 50,855.0 is broken, prices may rise to 52,655.0

JP 225 technical analysis for 18 December 2025
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

JP 225 technical analysis for 18 December 2025

Summary

The indicator is moderately positive for JP 225, as production is growing and slightly exceeds expectations. However, the slowdown compared with the previous month limits the potential for strong index growth. Confirmation of the trend in upcoming releases will matter more: if production growth stabilises at a sustainable level, it will support JP 225 through expectations of rising corporate profits. The next downside target for JP 225 stands at 52,655.0.

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Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.