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6 Jan 2014
Nikkei 225 vulnerable, daily Kijun underpins
FXstreet.com (Bali) - Late Dec 2013 gains in the Nikkei 225 have been evaporated in early 2014, with two trading days of sudden declines wiping out much of the progress made since the latest bull run initiated on Dec 20.
Near term, the Nikkei 225 futures chart saw price stalling at the 15,690/700 daily Kijun intersection, a level that needs to hold or else risk of deeper falls would increase, with potential targets at 15,500 ahead of 15,300.
On the upside, immediate resistance comes at 15,880/900 (sequence of intraday lows), followed by 16,000. As usual, boost in order flow for the Japanese benchmark index will kick in at 00GMT Tokyo open ahead of the 00.50GMT Tokyo fix.
From a broader perspective, the Nikkei broke a multi-decade (from 1991) trendline - principal - , with another one faced overhead 16,000+ (also broken), suggesting more upside long term looks likely. A strategy based on dip buying makes sense.
Near term, the Nikkei 225 futures chart saw price stalling at the 15,690/700 daily Kijun intersection, a level that needs to hold or else risk of deeper falls would increase, with potential targets at 15,500 ahead of 15,300.
On the upside, immediate resistance comes at 15,880/900 (sequence of intraday lows), followed by 16,000. As usual, boost in order flow for the Japanese benchmark index will kick in at 00GMT Tokyo open ahead of the 00.50GMT Tokyo fix.
From a broader perspective, the Nikkei broke a multi-decade (from 1991) trendline - principal - , with another one faced overhead 16,000+ (also broken), suggesting more upside long term looks likely. A strategy based on dip buying makes sense.