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
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
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
USD/JPY
Bullish
More View more
Real Time News
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/k2YkjBeSdW
  • RT @FxWestwater: Australian Dollar, APAC Markets Focus on Bond Yields to Start March Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/03/01/Australian-Dollar-APAC-Markets-Focus-on-Bond-Yields-to-Start-March.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $AUDUSD https://t.co/py…
  • 🇦🇺 Investment Lending for Homes (JAN) Actual: 9.4% Previous: 8.2% https://www.dailyfx.com/economic-calendar#2021-03-01
  • 🇦🇺 Home Loans MoM (JAN) Actual: 10.9% Previous: 8.7% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Wall Street IG Client Sentiment: Our data shows traders are now net-long Wall Street for the first time since Feb 01, 2021 when Wall Street traded near 30,246.40. A contrarian view of crowd sentiment points to Wall Street weakness. https://www.dailyfx.com/sentiment https://t.co/Qv5JIJxF2M
  • Aussie 10-year yield extends drop to 32 basis points after RBA buy notice - BBG $AUD
  • RBA to buy A$4 billion of longer-dated bonds, double usual size - BBG $AUD
  • Heads Up:🇦🇺 Investment Lending for Homes (JAN) due at 00:30 GMT (15min) Previous: 8.2% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Heads Up:🇦🇺 Home Loans MoM (JAN) due at 00:30 GMT (15min) Previous: 8.7% https://www.dailyfx.com/economic-calendar#2021-03-01
  • 🇰🇷 Balance of Trade (FEB) Actual: $2.71B Previous: $3.76B https://www.dailyfx.com/economic-calendar#2021-03-01
Nikkei 225 Technical Analysis: Upside Channel Holds, Even Up Here

Nikkei 225 Technical Analysis: Upside Channel Holds, Even Up Here

David Cottle, Analyst

Talking Points:

  • The Nikkei has settled into a narrow, elevated range
  • However, it remains in an uptrend which began in October
  • Retracement support looks strong

New to financial market trading? The free, DailyFX guide is all yours

The Nikkei 225 still looks remarkably comfortable even though it is currently around highs not previously seen since 1991.

The Japanese equity benchmark has been loitering around these levels for a couple of weeks now and, although it has lacked the impetus to push on it hardly looks as though it is preparing for a dive either. Momentum indicators are elevated, as they would be. But they don’t suggest rampant overbuying. The moving averages remain in pristine order too, with no troubling crossovers to report.

Nikkei 225 Technical Analysis: Upside Channel Holds, Even Up Here

The index looks a little stuck in a band between 23,526 at the bottom and 24,011 at the top. That band has contained all the trading action since January 4.

An upside push would have to crack the top of that band but, at this altitude, where it might go next is very hard to say. 1991 was too long ago for its memory to be much help. However, there is a quite compelling uptrend channel in play. It has been with us since October 25 and has been validated quite often, especially on the downside. A second upside test has just held too, suggesting that resistance beyond the merely psychological now exists in the 24,000 region.

Nikkei 225 Technical Analysis: Upside Channel Holds, Even Up Here

The downside is better-known territory of course.

Under current range lows, the index is likely to find support at 22,878.6. That would be the first, 23.6% Fibonacci retracement of the long climb up from September 8’s lows to the highs seen on January 8.

Nikkei 225 Technical Analysis: Upside Channel Holds, Even Up Here

Sure enough, a cluster of index support in that region stretches all the way back to early November last year. Should all of those give way the next retracement (38.2%) will be found at 22,1793. This offers a less obvious prop than the first, however.

--- 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