Home Forex Markets Nikkei 225 Technical Outlook: The Nikkei 225 bulls are preparing for a retaliatory surge!

Nikkei 225 Technical Outlook: The Nikkei 225 bulls are preparing for a retaliatory surge!

by WOOWinvest
0 comment
Nikkei 225 Technical Outlook: The Nikkei 225 bulls are preparing for a retaliatory surge!

Nikkei 225, Japan stocks, NKY – Technical Outlook:

• The Nikkei 225 has been stuck in a sideways market for several months;

• The overall trend of the index is still up.

• What are the key levels to watch?

Nikkei225Index Technology Outlookneutral

Nikkei225Rather than a reversal of a multi-year uptrend, the index appears to have formed a paused price pattern over the past two years.

Although last year’s Nikkei225The index has been generally weak, but it has been resilient, partly reflecting trends that have developed in recent years(see monthly chart).2015Year Triggered Major Double Bottom Pattern(2003year and2008/2009year low)Setting the stage for a reversal in a multi-year bear market. Subsequent higher highs and higher lows on long-term charts are indicative of an uptrend.

Nikkei225Index Monthly Chart

useTradingViewCreated chart

Having said that, the uptrend has been choppy, reflecting the long20The resolution of the bear market in 2009.However, during periods of heightened volatility across financial markets, includingcovidplunge and2022The index has held on to key support levels during the broader market’s weakness in 2019.

Looking at the weekly chart, the index has been holding above a fairly strong buffer of convergence:200weekly moving average and2018high point of the year. On the shorter time frame charts, there are some tentative signs of improving upward momentum.In this regard, in2022the horizon at the beginning of the year(about28500point)Any breakout above could set the stage for a resumption of the long-term uptrend, hopefully towards2021year high30795Point challenges to open the way.Any breakthrough could be32000-33350Pave the way, including1990-2008/2009year down78.6%Fibonacci retracement levels and1990mid-year highs.

🔔Whether you are a long-term or short-term trader, understanding candles and price trends means that you will be one step ahead to predict price trends, especially some important reversal patterns, which will bring huge profit potential!Now the DailyFX team has compiled a collection of professional candle charts and trend lines, and you can learn it for free immediately! 👏

Nikkei225Index Weekly Chart


useTradingViewCreated chart

From a fundamental point of view, due to the Bank of Japan(BOJ)With Japan’s ultra-loose monetary policy and a weak yen, Japanese stocks have been resilient in recent months. In addition, the Japanese economy continued to recover, driven by consumer spending. However, if the Bank of Japan decides to raise interest rates sharply in response to accelerating inflation, it could hurt stocks.

🔔DailyFX’s global professional team has written a manual related to risk management, click below to get it for free! It also tells you to cut your stops and let your profits run wild—why is it so hard to do?How to avoid some common pitfalls? The following free winner’s handbook will tell you how to improve your winning rate! 👏

(by Manish Jaradi)

The content on this web page is general market commentary only and may not constitute investment advice of any kind (tax, legal, accounting). This article does not constitute a direct investment invitation or recommendation for specific financial products. The content is for reference only. Readers should not rely on the information herein, nor should their actions or omissions be relied upon. We are not responsible for the results of any person’s actions or omissions based on this article. We make no warranties as to the accuracy of the content or suitability of the information provided. This article is not intended to be disseminated within the territory of the People’s Republic of China (excluding Hong Kong, Macau and Taiwan for that matter), except as permitted by the applicable laws of the People’s Republic of China.

Copyright statement: Unless it is for browsing the information on this website, or in accordance with the applicable laws or the terms and conditions, without our specific written permission, no one may copy, usurp, upload, link, or publicly demonstrate to a third party in any way , distribute or transmit any information or content on this website. For unauthorized reprinting of infringements, we reserve the right to further pursue the legal responsibility of the relevant actors. If you have business cooperation needs such as marketing, resource exchange, etc., please contact us.

element inside the element. This is probably not what you meant to do! Load your application’s JavaScript bundle inside the element instead.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News


Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy