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
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
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
Gold
Bullish
Oil - US Crude
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
Bitcoin
Bullish
More View more
Real Time News
  • The most interesting and largely overlooked net speculative futures readings comes from $USDMXN which has pushed to a record low - giving some serious pause to this tentative, multi-year wedge breakdown https://t.co/Qnpdw6BURp
  • One of the more extreme, 'shorter term' speculative futures position statuses is that for $GBPUSD: https://t.co/cHVPMcgKoY
  • Net speculative gold positioning is still hovering at net long records - a similar refusal to ease up reflected in the commodity's price ($GC_F) https://t.co/YQsDxWsLrL
  • The $NZDUSD sentiment outlook is bearish, how appropriate given that prices recently took out a near-term rising support line from November ahead of this week's NZ CPI report. To learn more about this tool, join me on Wednesdays at 1:00 GMT here #NZD - https://www.dailyfx.com/webinars/998956395?CHID=9&QPID=917702 https://t.co/QN7G4MW2Mu
  • Net speculative futures positioning behind the Dollar has dropped far far further than the $DXY itself. Will price or positioning close the gap? https://t.co/LM25g00PJP
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.14% 🇪🇺EUR: 0.05% 🇬🇧GBP: 0.00% 🇯🇵JPY: -0.04% 🇨🇭CHF: -0.04% 🇳🇿NZD: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Ws5mUElh5q
  • RT @RichDvorakFX: $USD $DXY | US Dollar Faces Bearish Fundamental Headwinds from the Fed & Trade https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2020/01/18/us-dollar-faces-bearish-fundamental-headwinds-from-the-fed-trade.html https://t.co/yNrA…
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Gold: 0.22% Oil - US Crude: 0.19% Silver: 0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/tk8nvUnsRt
  • Top event risk coming up over the next 24 hours: BOJ rate decision (? GMT); UK jobless claims (9:30); Eurozone investor sentiment (10:00); Deadline for US-France digital tax resolution (?); World Economic Forum (all day); Netflix earnings (21:00); Korea GDP (23:00)
  • 🇳🇿 NZD Performance Services Index (DEC), Actual: 51.9 Expected: N/A Previous: 52.9 https://www.dailyfx.com/economic-calendar#2020-01-20
Nikkei 225 Technical Analysis: Japanese Stocks Ready to Drop?

Nikkei 225 Technical Analysis: Japanese Stocks Ready to Drop?

2019-11-21 05:00:00
Ilya Spivak, Sr. Currency Strategist
Share:

NIKKEI 225 TECHNICAL ANALYSIS – Talking Points:

  • Nikkei 225 chart shows prices threaten break of support from August floor
  • Confirmation to signal reversal in near-term uptrend, expose 6-month lows
  • USD/JPY chart setup offers cautious support to a bearish Nikkei scenario

Where will markets end 2019? See our Q4 forecasts for currencies, commodities and stock indexes!

Japan’s Nikkei 225 stock index has edged lower since last week’s breakdown in the USD/JPY exchange rate warned of potential for on-coming weakness, as expected. Prices are now within a hair of breaking trend line support guiding them higher since late August.

From here, a daily close below this barrier as well as resistance-turned-support at 22505 that follows almost immediately thereafter would suggest a near-term trend change is afoot. Sellers would then 22120, followed by a price congestion zone in the 21680-825 region.

Immediate resistance stands at 23660, the November 7 high. A rebound that secures a foothold above this threshold with confirmation on a closing basis would probably see buyers taking aim at the 24200-515 area, marked by a double top that has contained upside progression since late January 2018.

Nikkei 225 stock index chart - daily

Daily Nikkei 225 chart created with TradingView

For its part, the anti-risk Japanese Yen has inched a bit closer to building on last week’s maybe-telltale reversal. USD/JPY has conspicuously backed off after retesting resistance at the site where it cracked the floor of a bearish Rising Wedge chart pattern. Extension downward may not be far behind.

US Dollar vs Japanese Yen price chart - daily

Daily USD/JPY chart created with TradingView

NIKKEI 225 TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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

DISCLOSURES

News & Analysis at your fingertips.