Japanese stocks have been on a strong run this year in hopes that Japan may be exiting its stagflationary environment. Warren Buffet was positive over Japanese stocks earlier in the year and many US investors have been looking at investing in Japan as an alternative to China. With all the geopolitical tensions around lately that have soured US-China relations Japan could be an alternative to consider. So, will the Nikkei keep finding buyers as we progress through the year?

Here are some key seasonal patterns to be aware of. Over the last 15 years, between August 10 and October 10, the Nikkei has only gained just over 50% of the time with an average drop of 3.28%. So, will this mean that any dips could find buyers ahead of the stronger seasonal pattern to end the year?

Major Trade Risks: Previous seasonal patterns do not necessarily repeat themselves each year.

HYCM clients can access the Seasonax product in order to analyse over 25,000 currency pairs, indices, commodities, as well as individual stocks. Please contact your account manager for a free trial. Certain products & services mentioned herein may or may not be available to all clients depending on which HYCM Capital Markets Group entity their trading account(s) adheres to.