Nikkei 225 Emerges Above the 21400 Key Barrier


The Nikkei 225 cash index edged north yesterday, and during the Asian morning today, it managed to overcome the key resistance territory of 21400. The advance continued, with the index currently trading above the peak of May 10th, which is at around 21580. This, combined with the fact that the price is trading above a tentative upside support line drawn from the low of June 4th, suggests a positive near-term picture in our view.

We believe that the move above 21580 may have encouraged more bulls to join the action, something that is possible to lead the battle towards our next resistance territory, at around 21915, defined by the inside swing lows of May 5th and 6th. If that level is not able to halt the rally either, its break may carry more bullish implications, perhaps setting the stage for the highs of those days, near 22220.

Our short-term momentum studies detect strong upside speed and support the notion for the index to continue drifting north for a while more. The RSI moved above its 70 line, and continues to point up, while the MACD lies above both its zero and trigger lines, pointing north as well.

In order to abandon the bullish case, at least in the near term, we would like to see a clear dip below the 21165 area, which currently coincides with the 200-EMA on the 4-hour chart. Such a dip would also bring the rate below the aforementioned upside line and could initially pave the way towards the 20950 support territory. That said, before we get confident on more negative extensions, we would like to wait for a dip below 20870, a support marked by the inside swing high of June 5th. Such a dip could allow declines towards the low of that day, near 20650.

Nikkei

 


 

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

 


The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

70% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.

EUR/USD News

GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.

GBP/USD News

USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.

USD/JPY News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Majors

Cryptocurrencies

Signatures