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
Mixed
Oil - US Crude
Bullish
Wall Street
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
Gold
Bullish
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/ltEO5dpKux
  • WTI crude oil is currently trading up against major resistance via the 2019 and 2020 highs within the confines of a channel; something has to give. Get your market update from @PaulRobinsonFX here: https://t.co/MO9foRjm2y https://t.co/YhBFdvZDEb
  • The Dow Jones and S&P 500 outlook appears bleak in the near term as retail traders increase their upside exposure. At the same time, these indices confirmed bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/fKCHELbOxo https://t.co/eVDwmFTaIg
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/8B8hqHahm1
  • The US Dollar finished off an eventful week after CPI and retail sales injected volatility into markets. FOMC is now in the Greenback’s sights as taper talks linger. Get your market update from @FxWestwater here: https://t.co/MHi0lfQ93j https://t.co/4XetwYAaNd
  • 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/ZZRLV0Wkea
  • The Nasdaq 100 index has likely formed a bearish Gartley pattern, which hints at further downside potential. Negative MACD divergence on the weekly chart suggests that upward momentum may be fading. Get your market update from @margaretyjy here: https://t.co/GkMEkVA7YR https://t.co/E1vyCMVt6K
  • 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/Ye4m1G4lMu https://t.co/2TpkkUu7Hg
  • Tesla boss Elon Musk is seemingly running the cryptocurrency market single-handed this week with his tweets prompting a massive sell-off before today’s sharp rally. Get your market update from @nickcawley1 here: https://t.co/qGci02osOP https://t.co/Yp24Sakrfl
  • 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/LDP3HlN4A3
Nikkei 225 Bounce Endures, Longer-Term Downtrend Still Solid

Nikkei 225 Bounce Endures, Longer-Term Downtrend Still Solid

David Cottle, Analyst

Nikkei 225, Talking Points:

  • The rise from June’s lows remains very much in place.
  • Channel support is still some way below the market too
  • However, the longer-term downtrend from late 2018 is worth watching

Join our analysts for live, interactive coverage of all major economic data at the DailyFX Webinars. We’d love to have you along.

The Nikkei 225’s impressive bounce from its June lows has continued, with its daily chart uptrend looking quite secure.

Nikkei 225, Daily Chart

The more cautious might point to the clear reduction in daily trading ranges seen in the past few days as evidence that the bulls are becoming less sure of themselves. That may be the case, of course. But such narrowing is often seen before major holiday breaks and the US Independence Day holiday this week may well explain it.

At any rate the Japanese benchmark looks comfortably enough within its daily chart up-channel. The channel base is after all a good way below the market now, at 21,340, with more immediate support likely closer to hand at June 20’s close of 21,458. That point is very close to what would be the first, 23.8% Fibonacci retracement of the overall rise since June. That comes in at 21,461.

That said the index has not yet quite managed to banish the possibility of a head and shoulders top formation, even though it looks rather less likely now than it did last week. A fundamental backdrop of record Wall Street highs and the clear post-crisis nexus between lower global interest rates and higher stock markets don’t suggest that these should be bad fundamental times for the Nikkei.

Of course, technically speaking the bulls still have plenty of work to do if they are to completely erase the steep falls which took the index down from May’s peaks to the lows of early June.

The fightback has been a lot more dogged and gradual than the fall, but, as long as that uptrend channel endures, it’s still on.

Near-term upside targets are 21,858.4, the peak of early March, and then in the 22,030 region. That latter area would be important as it would mean that the big daily falls of May 7 and 8 had been clawed back.

It’s probably worth pointing out, though, that the bulls still have quite a task on their hands of they are to convincingly break the daily chart downtrend which has seen a succession of lower highs since October, 2018.

Nikkei 225, Daily Chart.

This longer-term daily chart downtrend may be a more realistic picture of the Nikkei’s position.

Nikkei 225, 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