JPN225 Technical Analysis: Sideways Trade through Lunar New Year
- Nikkei 225 Strategy: Position adjustment during low volume period
- Range 15,978-17,653 firmly contains price action
- Sideways movements likely dominate Asian market this week
JPN 225 stalled its recent decline today, to trade flat within Friday’s band as Asia market starts Lunar New Year celebration with low liquidity across the board. The range 15,978 – 17,653 is expected to contain price action through this week. Traders could take this chance to readjust positions in preparation for a return of volatility next week.
Today’s price action conforms to Friday’s band, hinting at a drop in volatility. Occasional range trade opportunities could materialise during this holiday period. However any challenge of the two boundaries would be unlikely.
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--- 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.