JPN225 Technical Analysis: Await Clean Break of Resistance
- Nikkei 225 Strategy: Await a clean break of resistance or reversal at failure
- Upward momentum may not sustain while in overbought zone
- Next resistance level is 18,633. Firm support is at 15,978
JPN 225 climbed above a previous resistance level at 17,653 and a clean break would facilitate higher movement away from consolidation area. Momentum signals hover in overbought territory, a sign that the upward bias may not sustain. Any failure to close the day above 17,653 may send the JPN back to consolidation range below that.
Range traders could wait for confirmation of a sustainable rebound before taking positions. Intraday traders, on the other hand, may find opportunities on the upside of this resistance level. Strong upward momentum would be needed to prop prices up from here.
Support level holds firm at 15,978.
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--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh
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