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
EUR/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
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
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
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
More View more
Real Time News
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/PHK2sqB1jV
  • Top event risk for more than just the Dow and Dollar this week is the Wednesday #FOMC rate decision. What the markets expect sets the tone for how the event impacts price action. My run down of the week and Fed decision: https://www.dailyfx.com/forex/video/daily_news_report/2021/06/12/Dollar-and-SP-500-Breaks-Must-Abide-the-FOMC-Decision-This-Week.html https://t.co/Huvth4f706
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/AkE7bFRWAt
  • $GBPUSD continues to trade in ranges as volatility dwindles. UK data to play second fiddle to FOMC. Get your market update from @JMcQueenFX here: https://t.co/T0Eg4KaENB https://t.co/GMmZa5L0Il
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/wlGgQrcK3X
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/qnQ8Cx0DKv
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/RJLpBgS43V
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/6GrWzkOouM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/lIUxpfSem3
Nikkei 225 Technical Analysis: Time To Pause, Build Solid Base

Nikkei 225 Technical Analysis: Time To Pause, Build Solid Base

David Cottle, Analyst

Nikkei 225 Technical Analysis Talking Points:

  • The Tokyo stock benchmark is at new, 27 year highs
  • However, its rise has been quite sharp and it now needs a rest
  • Retracement support looks very likely to hold

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

Another week, another 27-year peak for the Nikkei 225. The seemingly unstoppable Tokyo stock benchmark continues to inch higher and, unsurprisingly, is starting to look in need of a rest.

The index has soared well above its 20-, 50- and 100-day moving averages in its climb to new peaks not seen since late 1991. However, it is now looking quite solidly overbought, with its Relative Strength Index at 74, well above the 70 level which usually sets alarm bells ringing.

The question for traders is how much lower consolidation is likely to take it. The index is a shade below its most recent significant high, October 1’s intraday 24,495 and there looks to be a cluster of modest support between 24,015 and 23559- the effective trading range in play between September 18 and 27.

Nikkei 225 Technical Analysis: Time To Pause, Build Solid Base

However, it seems unlikely that that range would survive a very stern test, but its giving way need not be in any way fatal to the bullish cause. The index is also well to the North of even the first, 23.6% Fibonacci retracement of its rise up from the lows of March to the highs of this month.

Nikkei 225 Technical Analysis: Time To Pause, Build Solid Base

That comes in at 23,503 and, for as long as it holds, it seems unlikely that the bulls will feel that they are in an serious difficulty. They might even remain reasonably sanguine for as long as the second retracement holds, at 22,889. However, I don’t even see that being tested in the short term.

At 27-year peaks, possible upside targets are tricky to pin down, but October’s high is the obvious initial target once consolidation has settled the current rather rampant overbuying.

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