Nikkei (JPN225) Wedging Towards A Big Move
- Sizable breakout looks imminent
- Range of triangle points to 1500 point move
- Direction yet determined, break of either key trend-lines will be confirmation
The price of the Nikkei (JPN225) has been contracting for several weeks now. This action is leading to a well-defined triangle formation with a high likelihood of breaking out next week. Which way will it break? Your guess is as good as mine, which is why it wise to wait for a confirmed breakout above or below the converging trend-lines. Given the height of the pattern, the measured move to expect after a breakout is roughly 1500 points.
JPN225 4-hr: Oct’14 – Jan‘15
--- Written by Paul Robinson
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.