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.

Free Trading Guides
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
More View more

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • #DidYouKnow traders generally prefer using candlestick charts for day-trading because they offer an enjoyable visual perception of price. Find out how you can utilize it in your trading strategy here: https://t.co/yFn12QgmxO https://t.co/QyHKRJOhDW
  • En español: ¿Qué trayectoria tomará el tipo de cambio del $EURUSD tras los anuncios de política monetaria del Banco Central Europeo y la Reserva Federal? #trading #forex #euro #EURUSD https://t.co/X1nRprTTRU https://t.co/5ZRMRpkro3
  • How can traders avoid #FOMOintrading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 https://t.co/eKVhbAGd4C
  • The $NZD has slumped back toward support at four-year lows as sellers retake control of price action after a punchy but brief corrective recovery. Get your market update from @IlyaSpivak here: https://t.co/72JZNVKUy4 https://t.co/e8ygfe6gGf
  • Part of trading is losing, that’s just a fact that everyone must accept straight away, How can #FOMO create hurdles in the process? Find out from @PaulRobinsonFX here: https://t.co/MwChGXI42z https://t.co/slj8Xr0dxH
  • #USDollar May Rise if US #GDP Data, #TradeWar Risks Spook Markets https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2019/09/21/US-Dollar-May-Rise-if-US-GDP-Data-Trade-War-Risks-Spook-Markets.html
  • Asia #FX markets will be closely watching for developments in the ongoing China-led RCEP trade negotiations against the backdrop of slower global growth and rising protectionism. Get your market update from @ZabelinDimitri here: https://t.co/HZ8Loqj3Ey https://t.co/g332JcY549
  • What are trading journals? How can you create one and reduce your #FOMOintrading? Find out: https://t.co/0akgWbyJEw https://t.co/Xyy7rxZHip
  • 💷 $GBP British Pound Weekly Technical Outlook My latest take on Sterling price action as #Brexit risk comes back into scope. Commentary on the charts and implied volatility table included. More via @DailyFX ➡️ https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/09/21/gbp-to-usd-price-analysis-british-pound-eyes-rise-in-brexit-risk.html https://t.co/Hd6LAurfqG
  • The Singapore Dollar is driven by the Monetary Authority of Singapore, which manages exchange rate instead of short-term interest rates. Learn more on the $SGD and how to trade it from @ddubrovskyFX here: https://t.co/eWLM9XZs5Y https://t.co/SCHhCQhlFV
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

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

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


News & Analysis at your fingertips.