Nikkei Stalls at 67,000 Yen Threshold as Profit-Taking Meets Dollar Strength

The Tokyo Stock Exchange is bracing for a test as the Nikkei Stock Average attempts to overcome profit-taking pressure and climb above the psychologically significant 67,000 yen level.

After a sharp rally of over 1,300 yen in the previous session, which left the index just 30 yen shy of the milestone at 66,970.22 yen on August 10, momentum favors further gains but is being tempered by the soft performance of U.S. markets during Japan's holiday closure.

The dollar-yen pair traded around 159.27 yen in early morning trading on August 12, with the yen's continued depreciation providing underlying support for export-related shares, particularly as it boosts earnings expectations for these companies.