JPN 225 Technical Analysis: A Firm Recovery
- Nikkei 225 Strategy: Follow the upturn toward 50% Fibonacci resistance
- Immediate support is 76.4% Fibonacci at 15,545
- Strong upward momentum dominates this week’s movement
JPN 225 retains a firm upside bias as it climbs higher and away from the 15,545 support level. Resistance comes at 50% Fibonacci of 17,416.5. Investors may stick to short term trades to ride this upturn.
Momentum signals approach overbought territory, which may hint at a threat of reversal. Caution should be exercised with stop loss around 76.4% Fibonacci.
In all, it is a one-way market until the end of this week. However in the medium term it is unclear whether the index will gather enough momentum to re-test a recent peak at 17,893.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.