Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
JPN 225 Technical Analysis: Consolidates near 10-Day MA

JPN 225 Technical Analysis: Consolidates near 10-Day MA

Nathalie Huynh,

Talking Points:

  • Nikkei 225 Strategy: Wait out the consolidation
  • 10-day MA at 17,620 provides weak resistance level, topped by 17,653 then 20-day MA
  • More choppy trading is expected until weekend

JPN 225 is on a fifth day of sideways trade, despite a resilient upward momentum. 10-day moving average at 17,620 caps the upside for now, with October 14-15 low at 17,653 nearby. Investors should wait for this consolidation to pass, when the current upside bias may come into play again.

A firm support at 16,890 on the downside and 10-day moving average on the upside combine to form an immediate range - which likely contains prices until next week. By then upward momentum may bring back higher moves, or alternatively choppy trading could ensue.

Those with long positions could keep stop trailing firm support level in anticipation of the first scenario next week. Dip buying is however limited, given risk-aversion before the weekend.

JPN 225 Technical Analysis: Consolidates near 10-Day MA

Daily Chart - Created Using FXCM Marketscope

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.

DISCLOSURES