Talking Points:
- Nikkei 225 Strategy: Sharp rebound likely carries on as Asia markets reopen
- Immediate support at 14,963 becomes a firm support
- Momentum upward reversal sets course for more gains
JPN 225 sharply bounced back today from 14,963 support level, also past the 74.6% Fibonacci at 15,545. Upward momentum hints at higher extensions to come. However the magnitude of gains may cool down after the first day back at work for Asia markets.
Short term traders could investigate the appropriate levels to buy dip, in anticipation of a short term upturn. Due to nature of market sentiment, it is unclear whether this rebound may build into an uptrend for the index. Topside remains capped by 50% Fibonacci at 17,416.
Daily Chart - Created Using FXCM Marketscope
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Daily Chart - Created Using FXCM Marketscope
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--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh
