JPN 225 Pauses under 50% Fibonacci and Resistance
- Strategy: Maintain long positions with tight stops, or trade the range
- Resistance levels come at 17,438.5; 18,045.8
- Momentum is biased to the upside
Nikkei 225 pauses ahead of 50% Fibonacci and resistance level at 17,438.5 on a second day. Upward momentum signals indicate the level might be tested in the near future. Overall, the 16,525.5-17,438.5 range still contains price movement.
Traders who prefer to maintain their long positions may consider keeping stops close to the resistance level in case a downward reversal emerges. Those who are waiting to trade the range may find opportunities near the range top.
Need a hand to start trading: Free Guides
Want to read market’s momentum: Speculative Sentiment Index
Daily Chart - Created Using FXCM Marketscope
Need a hand to start trading:Free Guides
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.