JPN225:Descending triangle developing here is the tradeJapan 225 IndexTVC:NI225Kearabilwe-NonyanaThe Jappan 225 lost 2.85%, closing at 64,325 on Wednesday, to reach its lowest level in four weeks due to changes in the macroeconomic environment. The yield on Japan’s 10-year government bonds touched above 3% for the first time since 1996 due to increasing oil prices and expectations of additional tight monetary policy moves from the Bank of Japan. Stronger Japanese yen has put pressure on Japanese companies like Toyota, Sony, and Softbank. The index is still 53.76% higher year-to-date. The daily chart depicts a broken trend structure. In the current case, TEMA 9 (64,618) serves as resistance, and the 50 EMA (66,718) and 200 EMA (58,910) form a wide and indecisive channel. The formation of a descending triangle since the high at about 69,000 in August reveals declining highs against a flat support at 63,500. The RSI (40.92) lags behind its signal (48.91), suggesting weak momentum. On the other hand, the MACD (−208.47 against −288.79 signal) shows a narrowing negative histogram (−80.32). This could point to the possible Trade recommendation Direction: Long Entry horizon: 63,000 – 64,274 Primary target: 66,718 Secondary target: 68,000 Stop loss: Daily close below 62,000 Technical scenarios BOJ hiatus and oil retreat, descending triangle breaches higher: Trump's comment that the US strikes in Iran would be short-lived temporarily reduced oil prices and JGB yields. Should de-escalation continue, the BOJ halts tightening, leading to a weak yen of around 150 and positive export performance. The MACD narrows, RSI returns above 50, and the descending triangle breaches higher towards 66,718 (50 EMA). Sideways Compression, The BOJ Waiting Game: The Descending Triangle squeezes between support at 63,500 and lower peaks as the Bank of Japan’s meeting approaches in October. The market struggles sideways in indecision with an RSI ranging from 38 to 48 and MACD close to zero. Triangle breakdown ,3% yield shock accelerates: Japan's 10-year yield exceeds 3.2% as oil stays above $95, forcing BOJ rate hike signals. The 63,500 support breaks, RSI drops below 35, and MACD widens negatively, targeting the 200 EMA at 58,910.