The Nikkei has risen by 1.4 per cent today (May 28th), cancelling out some of the losses recorded on the index yesterday.
Having fallen by more than three per cent on Monday and opened 1.4 per cent down this morning, the Nikkei bounced back before the midday break.
Speaking to Reuters, Kyosuke Suzuki, director of FX at Societe Generale in Tokyo, explained the trading range of the index is getting narrower by the day.
He said: "This is not like a panic we saw after the Lehman shock. If volatility is steadying at the current level, then the dollar/yen is likely to head higher."
Tetsuro Ii, chief executive of Commons Asset Management, said the Nikkei is currently at a "fair" value. The index is up almost 50 per cent on the start of the day.
Although 2013 has been a good year for the Nikkei so far, it fell by 7.3 per cent on May 22nd, which has been described by analysts as a "blip".
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