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.

Free Trading Guides
EUR/USD
Bullish
GBP/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
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.24% 🇦🇺AUD: 0.10% 🇯🇵JPY: 0.08% 🇨🇦CAD: -0.02% 🇨🇭CHF: -0.03% 🇬🇧GBP: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/EzqdVsVDhC
  • Why is #oil price sentiment so negative? What are the key terms you need to understand as an oil market trader? Find out from Shin Kim of S&Ps Global Platts only on Trading Global Markets Decoded #podcast here: https://t.co/EHouRRvky9 #OOTT https://t.co/y0bjKic0mY
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.13% US 500: -0.15% Germany 30: -0.37% France 40: -0.73% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/VAwYUZfkWK
  • Crude Oil Prices May Fall as Markets Weigh Weekend Headline Risk - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2019/10/18/Crude-Oil-Prices-May-Fall-as-Markets-Weigh-Weekend-Headline-Risk.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #CrudeOil #OOTT
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/DBuSOfIhQY
  • US Dollar Forecast: USD/MYR Reversal as USD/PHP Tests 2013 Support #USD $USDMYR $USDPHP - https://www.dailyfx.com/forex/technical/article/special_report/2019/10/18/US-Dollar-Forecast-USDMYR-Reversal-as-USDPHP-Tests-2013-Support.html?CHID=9&QPID=917702 https://t.co/VfFPJhPX31
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/aqWMzoZRrk
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.68%, while traders in France 40 are at opposite extremes with 80.94%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/CFFN6tgMXb
  • #GBPUSD Testing Five-Year Resistance: Breakout Ahead? https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2019/10/18/GBPUSD-Testing-Five-Year-Resistance-Breakout-Ahead.html
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.42% 🇦🇺AUD: 0.12% 🇯🇵JPY: 0.10% 🇪🇺EUR: 0.03% 🇨🇦CAD: 0.00% 🇬🇧GBP: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/i1K0L7cDfA
Nikkei 225 Fall Breaks Range, Puts Focus On Retracement Support

Nikkei 225 Fall Breaks Range, Puts Focus On Retracement Support

2019-07-18 05:00:00
David Cottle, Analyst
Share:

Nikkei 225 Technical Analysis Talking Points:

  • The index has broken lower, with many others
  • However, it has also taken out its most recent range
  • Nearby support should hold but bears watching

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

The Nikkei 225 has slipped like many other equity benchmarks this week as US-China trade tensions have bubbled back to the surface, with various Asian data points highlighting their impact on regional economies.

From a technical perspective the Tokyo stock benchmark’s slip has seen it break below a near-term daily chart trading range which had previously held the market for a couple of weeks.

Nikkei 225, Daily Chart

That range came in rather neatly between July 1’s two-month peak of 21,824.6 and the first, 22.6% Fibonacci retracement of the rise up from June 4’s lows. That comes in at 21,461.2 and gave way on Tuesday.

Since then the index has retreated quite sharply from that first retracement level, putting obvious focus on the second. That lies rather too close to the market for bulls’ comfort, at 21,236.4, a mere 38 points to the South, within easy reach of current daily candlestick ranges.

Still, there does seem to be a clear but modest range of support in that vicinity around which the market traded between June 10 and 28. Momentum still seems to be waning overall, however, which may mean that a slide down into that region is probably more likely than not now, even if it seems equally probably that falls will be limited to it in the absence of any bad fundamental news out of left field.

If the index can form a base there, the bulls will still have much work to do if they’re to claw back the last few days’ falls and get back to the 21,600 region which held sway before they started.

The ability to hold the index above that second retracement on a daily closing basis won’t necessarily be key to this, but it would be a good gauge of their current resolve and may be a good test of appetite for the rest of the week.

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

News & Analysis at your fingertips.