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 Technical Analysis: Keep Watch On Mid-Range Support

Nikkei 225 Technical Analysis: Keep Watch On Mid-Range Support

David Cottle, Analyst

Talking Points:

  • The Nikkei 225 has established itself in a broad, higher range
  • Right now it’s is more or less in the middle of it
  • However, it is perhaps showing signs of preparation for another, gradual push higher

The new DailyFX quarterly forecasts for all major traded currencies are now published. Check them out right here

My last technical look at the Nikkei 225 suggested that the index was consolidating, albeit within a relatively new and higher range.

Since then it has done just that, carving out a wide trading band between May 31’s intraday low of 19580 and June 20’s intraday top of 20321. At current levels, sits snugly if unexcitingly in the centre of that band. Moreover, its Relative Strength Index is firmly in the neutral zone at 47 or so, flagging neither significant overbuying or overselling.

So, we have a broad, established range that shows little obvious sign of breaking and a market neither wildly keyed-up nor overly gloomy. Is this then perhaps the dullest piece of technical analysis you’ll read today?

Well, hopefully not quite. For, within that range, the index seems reluctant to test downside any lower than June 29’s intraday low point at 19868. That level has contained bearish forays since mid-June and is becoming more notable. Two such forays have halted at or around there in the last seven sessions.

In short, this is becoming a level to watch. If it continues to hold then bulls can perhaps look forward to the establishment of a new, higher range which would mean that the index looks even more comfortable above the psychologically crucial 20,000 point.

If it gives way then the current range base would be back in view for the Tokyo benchmark and may need stout defence.

--- 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.