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.

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
Subscribe
Please try again
EUR/USD
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
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
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Bank of America sets bond sale at $15 billion, new record issuance for a bank - BBG $BAC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.51%, while traders in Germany 30 are at opposite extremes with 80.34%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Rt3UaXS0iz
  • CI Global Asset Mgmt to launch world's first Ethereum ETF - BBG $ETH
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.28% US 500: 0.16% France 40: 0.08% FTSE 100: 0.08% Germany 30: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/GMkjgMV7IS
  • US Indices are mixed today. The S&P 500 and Dow are up while Tech and Small Caps are trading slightly in the red. DOW +0.28% SPX +0.17% NDX -0.12% RUT -0.13% $DIA $SPY $QQQ $IWM
  • The US 10yr Treasury yield has slightly risen from the one month low hit yesterday around 1.53% to currently trade around 1.57%. Yields remain depressed compared to their levels from late March/early April. $USD https://t.co/uJJHXPaOhm
  • Retail CFD traders (at IG) have built up their heaviest short and net short position on the $SPX since we hit the peak at the beginning of September: https://www.dailyfx.com/sentiment https://t.co/IGK0KKRwwB
  • Hey traders! Wrap up the week with a quick market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/qLtlinTzj8
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.60%, while traders in Germany 30 are at opposite extremes with 75.74%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ABFYsKg28Y
  • USD/ZAR retraces from critical resistance. USD/CHF clings to Fibonacci Support. Get your market update from @Tams707 here:https://t.co/ZHO0NcWrNH https://t.co/6yIThyzgIc
Nikkei 225 Technical Analysis: Bulls Keep Momentum, Need a Rest

Nikkei 225 Technical Analysis: Bulls Keep Momentum, Need a Rest

David Cottle, Analyst

Talking Points

  • The Nikkei has put in an astonishing winning streak
  • It rose for twelve straight trading days
  • The signs remain bullish, but some consolidation would probably be a good thing

Just getting started in the trading world? Our beginners’ guide is here to help

Just look at the Nikkei 225 go.

The Tokyo equity benchmark is at two-decade highs and rose for twelve consecutive days as of Thursday. That’s the longest winning streak since May-June 2015 and it equals the lengthiest since the program of economic reforms instituted by Prime Minister Shinzo Abe and named “Abenomics” was introduced back in 2012. Now hopes for Abe’s return with an outright majority in this weekend’s election is adding fuel to an already roaring Nikkei fire.

Nikkei 225 Technical Analysis: Bulls Keep Momentum, Need a Rest

The question now of course is how long can that fire keep burning? The chart above suggests that plenty of fuel remains, with the index right in the middle of a strep uptrend chanel which has faced and survived valid tests of both its upper and lower bounds.

The moving averages tell a positive story too. Mid September saw one bullish crossover, when the 20-day moving average crossed above the 50-day. Now it has been joined by another one. The 50-day was threatening to cross above the 100-day when I took a technical look at the index last week. It has now done so conclusively.

Nikkei 225 Technical Analysis: Bulls Keep Momentum, Need a Rest

Of course after such a breathless charge higher it would be natural to expect at least a pause. Sure enough the Nikkei’s Relative Strength Index suggests that the index is now throughly and possibly dangerously overbought. On Thursday the RSI came in at a panting 83. That’s well above the 70 level which usually rings alarm bells.

Still, for as long as that uptrend looks safe, the bulls haven’t got a lot to worry about even if a period of reflective consolidation probably ought to come soon.

--- 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