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JPN 225 Technical Analysis: Choppy Trade amid Mixed Signals

JPN 225 Technical Analysis: Choppy Trade amid Mixed Signals

Nathalie Huynh, Contributor


Talking Points:

  • JPN 225 Strategy: Keep wide stop/target amid choppy trading
  • 10-day MA at 17,769 is resistance after any break of 5-day MA. Support is 16,890
  • Possible moves in either direction, volatility heightened

JPN 225 descended near an 11-month low of 16,890 after it broke previous support at 17,098, no doubt triggering stop loss. The index returned to trading below 5-day moving average for most of Asian session. Mixed signals leave investors vulnerable to volatility in either direction.

The upturn in momentum signals has not abated, a hint that the index is under a mixed bag of pressure. September low and the lowest since January 2015 at 16,890 comes as support level. On the top side, 5-day moving average at 17,316 holds weak resistance, topped by 10-day MA at 17,769.

Traders should keep stops wide to weather the heightened volatility. There has not been a change in direction although choppy trading likely dominates in the short term.

Daily Chart - Created Using FXCM Marketscope

Losing Money Trading Forex? This Might Be Why.

--- Written by Nathalie Huynh, Strategist for

Contact and follow Nathalie on Twitter: @nathuynh

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