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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • #CrudeOil price action could consolidate into a broad trading range following a historic Q2 as barriers of technical confluence stand to contain the commodity’s direction. Download our oil #trading guide for the full report: https://t.co/DcjPcVpX5x https://t.co/EJlDquZ9WR
  • It’s unlikely that the #ECB on its own will continue to be able to prevent the Euro from weakening if EU governments continue to argue about policy. Download our #EUR trading guide to find out more: https://t.co/Kjp34DoEzE https://t.co/gtKQa9zXX5
  • The #USD spent the bulk of Q2 in a range after a climactic Q1; and with a series of risk themes continuing to push, combined with an election in November, the door appears open for more vol in USD. Download our USD trading guide here: https://t.co/2Wo7EcwAht https://t.co/BA5dWk4wTt
  • $USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here:https://t.co/5GO9UrvO4y https://t.co/OTTEmg76W8
  • The immediate focus is on a break of this multi-week consolidation formation in the Australian Dollar with the broader rally vulnerable while below 7042. Get your AUD technical analysis here: https://t.co/iEYos1ioBc https://t.co/kuzB3Eqps0
  • #Gold prices have rallied to nine-year highs with the breakout testing multi-year uptrend resistance into the open of Q3. Can the rally be sustained? Download our latest Gold trading guide!: https://t.co/3KO2QWOnOt https://t.co/YIIGZdeIAJ
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/zerRXZC1Tq
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkd4B0k https://t.co/uj93z2SHpH
  • The Australian Dollar’s surge from the March lows may be coming to an end as bearish patterns begin to line up on multiple time-frames. Check out our #AUD trading guide to learn more here: https://t.co/pjfm07tqFd https://t.co/VypHLra1ER
  • The Evening Star candlestick is a three-candle pattern that signals a reversal in the market and is commonly used to trade forex. Learn more about the evening star candlestick pattern here: https://t.co/8OTE7m01IG https://t.co/Vumcng7UB3
Nikkei 225 Technical Analysis: Trend Line Guides Prices Lower

Nikkei 225 Technical Analysis: Trend Line Guides Prices Lower

2017-04-04 05:58:00
David Cottle, Analyst
Share:

Talking Points:

  • The Nikkei has been rejected at trend line resistance once again
  • For the moment, this looks like a short-term problem
  • But longer term bullish indicators could be threatened if the bulls can’t fix it

The Nikkei 225 seems to be in a spot of technical trouble, at least when looked at from a short-term perspective.

This might not be obvious. After all, the index has been meandering for a couple of weeks, notching up almost as many rising days as fallers. Nevertheless, it has remained capped by a downward-sloping trend line in place since mid-March.

Clear weakening. Nikkei 225 short-term

Nikkei 225 Technical Analysis: Trend Line Guides Prices Lower

That’s not good news for the bulls. At the time of writing (02:35 GMT on Tuesday, April 4) this barrier doesn’t look at all threatened. It comes in at 19150 or so, meaning that the Nikkei is 250 points below it. Given current daily trading ranges a quick retake of that point looks like a big ask.

This puts short-term focus on the downside, where clear support remans hard to sport until we get all the way back to 18823, which arrested the index’s early-February slide.

Longer-term however, the picture looks a little brighter. The Nikkei remains very well within an ascending channel which began back in July 2016. The base of that channel is miles away to the downside at around 17500. So, nothing serious to worry about, right?

Holding up. Nikkei 225 longer term

Nikkei 225 Technical Analysis: Trend Line Guides Prices Lower

Well, clearly the benchmark’s short-term problems look a lot less serious when viewed from this perspective, but there is a caveat.

The top of that ascending channel hasn’t been threatened since the Nikkei’s long climb topped out back in January. And that top is getting ever further away by the day.

If the index is to stage a convincing return to the form it showed earlier this year, that channel top needs to get a little closer. If it doesn’t, then short-term weakness could start to look a little more like a long-term problem.

Would you like to know more about financial market trading? The DailyFX trading guide is for you.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

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

DISCLOSURES

News & Analysis at your fingertips.