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.

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
More View more
Real Time News
  • Will be covering the Japanese #Yen to see how retail positioning could shape the outlook for $USDJPY, $AUDJPY and $EURJPY Starting in about 30 minutes! Signup for the session below: https://t.co/afqne77wU6
  • Join @ddubrovskyFX at 20:00 EST/00:00 GMT for a webinar on what other traders' buy/sell bets say about price trends. Register here: https://t.co/AzOQioRZER https://t.co/h2DAnqnY7J
  • #BlackRock: We are neutral U.S. equities. We see U.S. growth momentum peaking and expect other regions to be attractive ways to play the next leg of the restart as it broadens to other regions, notably Europe and Japan $SPX $NDX
  • #BlackRock: The new nominal theme leads to a steeper yield curve expectation than market pricing. We see yields rising gradually, keeping us broadly underweight government bonds, particularly for longer maturities #trading $TLT
  • BlackRock: We are overweight European equities, and neutral Japan #trading
  • Gold prices face off with rising Treasury yields as jobs data approaches. Meanwhile, iron ore prices caught a small bid on bullish port activity out of China. Get your market update from @FxWestwater here:https://t.co/A79cY6KvDI https://t.co/rJ0xqsUPu1
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwvklO https://t.co/cRqAcvYkI8
  • #Blackrock: We are moderately pro-risk and keep some cash to potentially further add to risk assets on any market turbulence #trading $SPX $RUT $DJIA
  • RT @BrendanFaganFx: Natural Gas Outlook: Price Continues to Soar as Severe Winter Shortage Looms $NG $NG_F Link: https://www.dailyfx.com/forex/market_alert/2021/09/28/Natural-Gas-Outlook-Price-Continues-to-Soar-as-Severe-Winter-Shortage-Looms.html…
  • USD/CAD is set to snap a five-day sell-off with today’s rally breaking near-term downtrend resistance. Get your $USDCAD market update from @MBForex here:https://t.co/GhpA2pJJqL https://t.co/sDuE9WdDEg
Nikkei 225 Technical Analysis: Aug Peak In Focus If Support Holds

Nikkei 225 Technical Analysis: Aug Peak In Focus If Support Holds

David Cottle, Analyst

Nikkei 225 Technical Analysis Talking Points:

  • The Nikkei has staged a little bounce which has taken it back above notable resistance
  • August’s highs beckon once again, but it seems unlikely they’ll be topped for long in the current risk environment
  • Broad support looks firm too though

Get trading hints and join our analysts for interactive live coverage of all major economic data at the DailyFX Webinars.

Nikkei 225 trade is arguably more a fundamental story than a technical one at present, with trade headlines and general risk appetite dictating day-to-day direction. The trade-war story tends to focus on relations between China and the US, but as a persistent runner of surpluses with the US, Japan is in uncomfortable focus too.

Still, for all that the Tokyo stock benchmark looks quite comfortable from a technical perspective. The index remains close to highs we haven’t seen since February and investors seem reasonably content to hold it there. This week’s trading action has taken the index once more back above the range which contained trade between most of July and early August.

Nikkei 225 Technical Analysis: Aug Peak In Focus If Support Holds

For as long as it stays above that line, the more enthusiastic bulls will no doubt target the most significant recent high, August 29’s intraday peak of 23,118. However, it’s obvious that the foray which took the Nikkei to that point didn’t last long, and it’s tempting to suggest that any other near-term attempt will probably fail too, given the rather hair trigger nature of risk appetite.

Still, for as long as the index remains above that 22,682 support line another try will be likely.

More broadly though, it’s notable that the index remain above a well respected uptrend line from the lows of March 25.

Nikkei 225 Technical Analysis: Aug Peak In Focus If Support Holds

Indeed the index is now a good 100 points or so above the support offered by that line, and it’s hard to see the index as being in much seriously jeopardy for as long as that’s the case. Falls will probably find support below that at 22,455. That is the first, 23.6% Fibonacci retracement of the rise up from those March lows to the peak of August 29- not yet surpassed.

Be wary of daily closes below that, however. They might well bring second-retracement support at 22,040 into bearish focus. A fall that far anytime soon would see that downtrend line broken

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES