Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Nikkei 225 Rallies to Contest 50% Fibonacci

Nikkei 225 Rallies to Contest 50% Fibonacci

Nathalie Huynh, Contributor

Talking Points:

  • Strategy: Prepare for a serious contest of 50% Fibonacci or even a breach
  • Upward pressure supports the current rally
  • Support level is 16,461.5 and resistance level is 18045.8

A rally inthe Nikkei 225 continued into the second week as it headed to 50% Fibonacci at 17,438.5. Higher extensions are possible given a building momentum. A resistance level and 61.8% Fibonacci comes above that at 18,045.8.

This is the first time the Nikkei has seriously tested 50% Fibo since a month-long consolidation in March. Hence it is a positive signal for investors, although the risk of a double top looms. If the index fails to break through resistance level, upward momentum would likely retain it around current levels.

As the focus has shifted to levels above 17,000, an immediate support at 16,461.5 is unlikely to be challenged soon.

Need a hand to start trading: Free Guides

Want to read the market’s momentum: Speculative Sentiment Index

Want to improve your trading strategy: Traits of Successful Traders

Daily Chart - Created Using FXCM Marketscope

--- Written by Nathalie Huynh, Strategist for

To receive Nathalie’s analysis directly via email, please SIGN UP HERE

Contact and follow Nathalie on Twitter: @nathuynh

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.