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JPN 225 Technical Analysis: In Pause despite Downtrend Signal

JPN 225 Technical Analysis: In Pause despite Downtrend Signal

Nathalie Huynh, Contributor

Talking Points:

  • JPN 225 Strategy: Maintain position except for break of 5-day moving average
  • Immediate support: 17,483; Immediate resistances: 5-day MA at 18,000, then 10-day MA at 18,449
  • Look out for change of momentum direction

JPN 225 pauses ahead of a daily low in September at 17,483 after it slid past 23.6% Fibonacci yesterday. Momentum has not yet reversed to upward. Any break of 5-day moving average at topside would be an indicator for such a change.

An 11-month low at 16,890 (September 29) comes as firm support level below the immediate support, followed by 2015’s low of 16,433. At the top, 5-day and 10-day moving averages are notable resistance levels at 18,000 and 18,449 respectively.

Traders with short positions could hold out through this weekend, or take profit early for caution of change of direction next week. Downtrend signal remains in moving averages. Those look to buy dip should keep stops close to current support level, in case of further decline.

Losing Money Trading Forex? This Might Be Why.

--- Written by Nathalie Huynh, Strategist for DailyFX.com

Contact and follow Nathalie on Twitter: @nathuynh

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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