NIKKEI Sell IdeaTVC:NI225 has been in bearish trend printing series of Lower Lows and Lower Highs. Currently, It has been retraced to premium fib 75% level where we can look for short opportunities. Will it continue it's bearish momentum ?
Jp225
JP225 to continue in the downward move?NIK225 - 24h expiry
Although the bears are in control, the stalling negative momentum indicates a turnaround is possible.
A higher correction is expected.
Our short term bias remains negative.
We therefore, prefer to fade into the rally with a tight stop in anticipation of a move back lower.
Weekly pivot is at 37771.
We look to Sell at 37805 (stop at 38125)
Our profit targets will be 37005 and 36805
Resistance: 38570 / 41135 / 42120
Support: 36990 / 35705 / 34425
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
Japanese Equities Remain Compelling Despite Record Crushing RiseAnimal spirits are palpable in the Land of Rising Sun. Nikkei-225 smashed through it previous all-time-high set more than 40 years ago. Japanese equity markets have turned steaming hot over the past year after stagnation through lost decades.
Strong foreign investment inflows, positive impact from the corporate governance reforms, portfolio rebalancing away from China, and low valuations, are collectively serving as robust tailwinds for the Japan equity market.
Yet risks remain from an early BoJ policy pivot, high inflation eroding spending power, and limited domestic capital investment.
This paper delves into factors driving record rally of Nikkei-225 index, its outlook, and posits a hypothetical trade to benefit from its continued ascent.
WIDE RANGING REFORMS IN PLAY TO BOOST MARKETS. IS IT WORKING?
In 2022, the Tokyo Stock Exchange (“TSE”) embarked on market restructuring plan with the creation of new market segments.
Source: Tokyo Stock Exchange
TSE rolled out a raft of corporate governance reforms in March 2023. It summarized key initiatives that investors aspire to see into fruition, namely (a) Weigh the cost of capital from investors perspective, (b), Report profitability and valuation metrics from multiple perspectives, and (c) Allocate resources to improve corporate value.
Reforms aim to boost capital efficiency by utilizing excess cash reserves held by Japanese firms. Price-to-book ratio (“PBR”) is a key metric in TSE’s cross hairs. As of 31/Dec , more than half the firms that have submitted disclosures have a PBR of less than one. PBR less than one suggests that a firm’s dissolution value is greater than its market cap.
Data Source: TSE
Even among some of the largest firms in the country, PBR is less than 1.
Data Source: TV Stock Screener
A TSE Review shows that firms are allocating additional resources towards growth initiatives. It suggested share buybacks and dividends were effective means for improving profitability.
Impact of the reforms are visible in many ways. Higher shareholder returns (through dividends and buybacks) are already manifest across many firms.
Still, there is a long way to go. Disclosures and reforms are not widespread yet. As smaller firms join, capital investment could spread wider.
Data Source: TV Stock Screener
Also, while dividend growth is high, capex growth remains low. A focus on investor returns improves stock valuations in the near term. However, a larger push towards long-term capital investments will be required for long-term sustained growth.
Capital spending by firms surged 16.4% YoY in Q4.
Japan’s Prime Minister Fumio Kishida is pushing for its citizens to invest in domestic firms rather than save. He has re-launched the NISA tax-free investment programme. It provides extended tax-exemption periods and higher annual investment limits. The scheme, if successful, could channel large chunks of new capital into Japanese equities.
Domestic participation remains low for now. Japanese investors prefer foreign stocks over domestic ones as per a Morningstar study .
VIBRANT FOREIGN INFLOWS IN JAPANESE EQUITIES
While domestic investors are yet to embrace its domestic markets, foreigners are leading the charge. US investors have poured USD 8.3B into Japan focused ETFs ( AMEX:EWJ , AMEX:BBJP , and AMEX:DXJ ) since 2023.
JAPANESE EQUITIES REMAIN UNDERVALUED
Japanese equities remain under-valued. Warren Buffet famously invested USD 6 billion during the pandemic in Japanese trading giants citing that he was offered a “ridiculous price”.
Despite the recent market surge, P/E for stocks in the Nikkei-225 stands at mere 20.8x. Comparatively, stocks in the S&P 500 have an average P/E of 34.9x.
Data Source: TV Stock Screener
Nikkei-225 valuations are even more attractive when adjusted for growth. Average (excl. outliers) TTM PEG ratio for Nikkei-225 firms is 1.3x while for the S&P 500 its 2.5x.
Data Source: TV Stock Screener
Low profit growth remains a concern for Japanese firms. According to the Japan Ministry of Finance figures , ordinary profits rose by 13% YoY in Q4 2023, while high, that’s slower than 21% during Q3 2023.
JAPAN IS ALSO AN AI BENEFICIARY
Tokyo Electron, Renesas, and Advantest, constituents within the Nikkei-225 index have emerged as AI rush beneficiaries. Specifically, Tokyo Electron has surged more than 58% YTD. Softbank is another top performer thanks to its investment in $ARM.
Heatmap of Nikkei-225 with key firms that comprise a large weightage in the index highlighted in blue.
Nikkei-225 is a price-weighted index. Tokyo Electron commands the second largest weight in the index at 9.4% due to its high price. Advantest is third with 4.7%. Softbank ranks fourth with 4.45%. Therefore, a sustained AI fuelled market rally is likely to positively impacting the index.
Not just the chip stocks, the Nikkei rally has been top-heavy due to outperformance of other large stocks too. Fast Retailing (the top weight in the index) is also supported by strong tailwinds and solid financial performance which has clocked a 26% rise YTD (versus 19% jump in the index).
If outperformance among the large Japanese firms continue, the Nikkei will continue to race at a fast pace.
NIKKEI IS STARTING TO FACE HEADWINDS
Despite impressive performance and bright outlook, cause for concerns exist in the near term. Rising concerns that the BoJ may exit its loose monetary policy sooner than previously expected could snap the rally.
Inflation has started to rebound. Wage growth estimates are solid. Revised figures for capital spending are expected to show that the economy avoided a technical recession in Q4.
The benchmark index is starting to face resistance. An earlier than expected BoJ pivot could put brakes on this rally.
Some market participants expect the BoJ policy pivot as soon as the 19/March policy meeting. Most expect the pivot to occur at the 26/April meeting. A consensus on the exact meeting has not been reached among BoJ officials according to Bloomberg .
HYPOTHETICAL TRADE SETUP
Nikkei is benefiting from strong tailwinds. It also faces the risk of a near-term correction, particularly from anticipated strengthening of the Yen.
A hypothetical long position in the Yen denominated CME Nikkei-225 index futures with an entry upon near term correction is posited for a superior reward-to-risk ratio.
The following hypothetical trade setup comprising of a long position in the Nikkei-225 Yen Denominated futures expiring in June (NIYM2024) benefits in case the Nikkei-225 rises.
As the payout from the position is denominated in Yen, a strengthening of the Yen will serve as an additional boost to the dollar P&L.
• Entry: 37,900
• Target: 41,690
• Stop Loss: 35,000
• Profit at Target: ¥1,895,000 ( (41690 – 37900) x 500 Yen/index point)
• Loss at Stop: -¥1,450,000 ( (35000 – 37900) x 500 Yen/index point)
• Reward-to-Risk Ratio: 1.3x
MARKET DATA
CME Real-time Market Data helps identify trading set-ups and express market views better. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
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USD/JPY Approaches 141.30, Extending Two-Day Decline USD/JPY continues its downward trend for the second consecutive session, trading below the 141.30 level during the Asian hours on Thursday. Improved trade data from Japan in November has exerted pressure on the currency pair. However, less optimistic remarks from Bank of Japan Governor Kazuo Ueda may weigh on the Japanese Yen.
From a technical standpoint, the spot price indicates potential recovery below the 142.00 level and appears to have broken the two-day decline. This suggests that breaking below the 200-day Simple Moving Average (SMA) is crucial support for bearish traders. Furthermore, oscillators on the daily chart remain deeply in negative territory, indicating limited resistance for USD/JPY on the downside. Any subsequent upward movement may still be viewed as a selling opportunity and is likely to be capped around the 142.75 level (200-day SMA). This implies that further buying activity leading to a move beyond the 143.00 level could trigger short-covering actions, allowing the bullish camp to reclaim the 144.00 milestone.
On the flip side, weakness below the Asian session's lowest levels around the 141.90-141.85 region would reaffirm the short-term trend and make USD/JPY susceptible to retesting below the 141.00 level, or the multi-month lows touched last week. Subsequent declines could potentially pull the spot price towards the intermediate support at 140.45 on the way to the psychological level of 140.00.
Japanese Yen Weakens on Soft Inflation, BoJ Policy UncertaintyThe Japanese Yen (JPY) faced a decline after softer domestic consumer inflation data, raising uncertainties about the Bank of Japan's (BoJ) potential policy tightening. BoJ's October meeting minutes revealed a consensus to maintain the accommodative policy, contributing to JPY weakness. The USD/JPY pair saw a modest recovery from weekly lows, supported by the USD's modest strength.
Japan's core CPI remains at 2% for the 20th consecutive month, and optimism about future wage growth suggests a potential shift in BoJ's stance. However, the market anticipates a more positive U.S. Federal Reserve (Fed) policy easing in 2024, influenced by the U.S. Q3 GDP report. Investors are now watching the U.S. Core PCE Price Index for further guidance on USD/JPY short-term direction. Despite this, the fundamental outlook leans towards JPY strength, indicating a downside bias for the currency pair.
Japanese Yen Retreats on Soft Inflation, USD StrengthensFrom a technical standpoint, spot prices indicate a potential rebound below the 142.00 level, seemingly breaking the two-day downtrend. This suggests that the overnight break back below the 200-day Simple Moving Average (SMA) is crucial support for bearish traders. Furthermore, oscillators on the daily chart remain firmly in negative territory, indicating minimal resistance for the USD/JPY pair on the downside. Therefore, any subsequent upward move may still be considered a selling opportunity and remains capped near the 142.75 level (200-day SMA). This implies that further buying activity, leading to a move beyond the 143.00 mark, could trigger short-covering actions and allow the bullish camp to reclaim the round figure of 144.00 in the short term.
On the flip side, weakness below the intraday low around the 141.90-141.85 region would reaffirm the short-term trend, making the USD/JPY pair vulnerable to a retest of the sub-141.00 level or the multi-month lows touched last week. The subsequent decline could potentially drive spot prices towards intermediate support at 140.45 on the way to the psychological milestone of 140.00.
"USD/JPY: Japanese Yen Halts Decline, Eyes US CPI Data"The Japanese Yen regained positive momentum in the Asian trading session on Tuesday. USD/JPY partially eroded some of the strong recovery seen in the past two days. Investors are awaiting the US Consumer Price Index (CPI) for fresh impetus ahead of the FOMC meeting on Wednesday.
From a technical standpoint, USD/JPY showed a certain degree of recovery last week at the crucial 200-day Simple Moving Average (SMA). The subsequent move exceeded the 23.6% Fibonacci retracement of the recent decline from the vicinity of 152.00, or the YTD high, supporting bullish sentiments. However, the sharp rise during the day halted near the 200-hour SMA, now closing around the 146.50 level. This area will now play a crucial pivot point, and clearing it would allow the price to test the 50% Fibonacci level, around 146.80, and reclaim the 147.00 milestone.
Meanwhile, oscillators on the daily chart are deep in positive territory, supporting the potential for some upward action at higher levels. This suggests that the resistance at the 100-hour SMA, around 145.85, may now act to defend the downside just ahead of the psychological level of 145.00. Further selling pressure could push USD/JPY back towards the intermediate support zone of 144.55-144.50 on the way to the 144.00 mark. A convincing break below this level would be considered a strong bearish catalyst, paving the way for deeper losses.
On the other hand, the Japanese Yen (JPY) extends its downward trend for the second consecutive day, pushing the USD/JPY pair towards the 146.00 level during the European trading session on Monday. A report on Friday suggested that comments from Bank of Japan (BoJ) Governor Kazuo Ueda last week were misunderstood, and the central bank will maintain the status quo until positive wage inflation begins. This comes alongside weaker-than-expected GDP reports from Japan, indicating the domestic economy remains fragile and expectations of imminent rate hikes may be inflated.
Conversely, the US Dollar (USD) attracts some renewed buying interest after betting on an early Federal Reserve (Fed) policy easing was scaled back, proving to be another supportive factor for the USD/JPY exchange rate. Friday's closely watched US employment figures showed a rapid growth pace in November, with the unemployment rate dropping to 3.7%. This indicates signs of underlying strength in the labor market and suggests that current market pricing for a rate cut in March 2024 may be premature.
The recent sharp upward move seen around the USD/JPY pair in the past hour may be attributed to some technical buying based on sustained strength beyond the 100-hour Simple Moving Average (SMA). This suggests that concerns about a deeper global economic downturn and geopolitical risks may limit losses for the safe-haven JPY and restrict any further upside moves for the currency. Traders may also limit strong bets ahead of this week's significant event/data risks - US Consumer Price Index on Tuesday and the crucial FOMC policy decision on Wednesday."
USD/JPY Weakens on Fed Rate Cut Speculation and BoJ PivotThe Japanese Yen has surrendered recent gains against the US Dollar amidst speculation of a Fed rate cut in March and a shift in the Bank of Japan's (BoJ) policies. Despite a day-end recovery, USD/JPY experiences one of its worst trading days in over a year, dropping below 142.00 and closing just above 144.00.
Despite the intraday recovery, USD/JPY had one of its worst trading days in over a year, slipping below 140.00 in November last year. Throughout Thursday's trading session, USD/JPY transitioned from a slight decrease to a drop below the 200-day Simple Moving Average, requiring significant progress for a recovery towards the 147.00 handle. The 50-day SMA is currently positioned higher than the price action on Thursday, pushing towards the 114.90 region.
Expectations of a Fed rate cut weigh on the US Dollar
There is growing speculation that the Federal Reserve has concluded its rate hikes and will commence a rate cut in March, putting pressure on the US Dollar. In contrast, the Bank of Japan is expected to move away from extremely loose monetary policy in the coming months. This, coupled with risk aversion sentiment, offsets the safe-haven appeal of the Japanese Yen.
USD/JPY witnessed a more than 4% decline on Thursday, quickly dropping below 142.00 before larger markets staged a modest recovery, pulling the Japanese Yen (JPY) back into a reasonable price range. USD/JPY closed Thursday down by around 2%, while the Yen entered Friday's market session in the green for the week.
The Yen saw a broader market recovery following unconventional comments from Bank of Japan Governor Kazuo Ueda, unexpectedly hinting at the eventual end of BoJ's negative interest rate policy, possibly in the early part of next year.
"JPY Surges to Three-Month High Against USD"The Japanese Yen extended its robust upward momentum against the US Dollar on Friday and kicked off the new week with a positive sign, pulling the USD/JPY pair to a nearly three-week low around the 146.25-146.20 range during the Asian trading session. The US Dollar is attempting to recover from its lowest point in two and a half months at 146.65, supported by a slight rebound in US Treasury yields, which is exerting pressure on the Japanese Yen.
On Thursday, New York Fed President John Williams suggested that interest rates could reach their highest point, supporting this perspective. In this context, the analysis of Fed Chairman Powell's conference later today will be closely scrutinized to evaluate the central bank's next steps.
On the other hand, growing expectations that the Bank of Japan may move away from its extremely accommodative monetary policy by 2024 are providing some support for the JPY.
From a broader perspective, this currency pair maintains a downward trend from its mid-November high near 152.00, with a resistance level at 148.75 likely to limit the upward movement before the late November peak at 149.75. Support levels are identified at 147.77 and 146.65.
"USD/JPY Holds Near Yearly Highs, Trading Around 151.70"The USD/JPY pair regains positive momentum, partially reversing significant losses from the previous day, returning to the 150.15 zone, the week's lowest level. Intraday buying activity intensified after Japan's GDP print fell below expectations, pushing the spot price to new daily highs. The USD/JPY exchange rate fluctuates around 151.70 during the Asian trading session on Tuesday.
The USD/JPY pair maintains its yearly high and has the potential to surpass these levels if the U.S. Dollar (USD) successfully halts recent losses. However, the greenback is facing hurdles from the volatile yields of U.S. Treasury bonds. At the time of writing, the yield on the 10-year U.S. Treasury bond hovers around 4.63%.
USD/JPY Recovers from Recent Losses, Hovers Around 150.50"USD/JPY rebounds from recent losses observed in the previous session following weaker-than-expected US inflation data. However, the pair trades slightly higher around 150.60 in Asian trading on Wednesday. The USD/JPY exchange rate fluctuates around 151.70 in Tuesday's Asian session. The pair holds near yearly highs and has the potential to surpass these levels if the US Dollar (USD) successfully mitigates recent losses. Nevertheless, the greenback faces challenges from volatile US bond yields, with the 10-year Treasury yield hovering around 4.63% at the time of writing.
Japanese Yen Nears 33-Year Low Amid Powell's Rate Hike SignalThe Japanese yen faced rapid depreciation today, approaching levels not seen in 33 years, following signals from Federal Reserve Chairman Jerome Powell that interest rate hikes may continue amid concerns about persistent inflation. The yen traded at 151.44 against the US dollar, showing a slight 0.06% increase from the previous session.
On Thursday, Powell reiterated hawkish views on interest rates, challenging market expectations that had predicted rate cuts in 2024. His comments underscored doubts about achieving the Fed's 2% inflation target with the current policy framework, leading the market to reconsider the potential for rate cuts in mid-2024 from June to July.
This stance contributed to the yen's worst performance since August, with a monthly decline of 1.42%. The currency's notable slide over the past month hit a one-year low of 151.72 against the dollar on October 31 and is now approaching levels not seen since 151.96.
The sharp decline of the yen has drawn the attention of Japan's Ministry of Finance (MOF), raising growing concerns about the need for intervention in the currency market to stabilize the yen and minimize potential impacts on the Japanese economy. The MOF closely monitors these developments as currency exchange rates hover near a crucial level that previously prompted official action.
IS THE JP225 ON ITS WAY TO THE 33600As indicated in the chart, it is evident that we are currently experiencing a robust uptrend. However, there has been a recent corrective phase in the price action that presents an intriguing opportunity. I'd like to share my perspective, especially as an educational channel.
The JP225 has been on an upward trajectory for quite some time, and if you observe the 1-day chart, you'll notice a recent period of sideways movement with precise touches at the chart's boundaries. Initially, there was an attempt to create an upward spring that proved unsuccessful, but over the past couple of weeks, a clear false breakdown in the downtrend has emerged.
It's important to note that this analysis is not intended as trading advice. Here are the details of the setup:
Entry Price: 31,540
Stop Loss (SL): 31,000
Take Profit 1 (TP1): 32,160
Take Profit 2 (TP2): 33,317
we are alreay 200 pips in profit the old post got removed
JP225 to continue in a rally?NIK225 - 24h expiry
Short term momentum is bullish.
There is no indication that the rally is coming to an end.
32240 has been pivotal.
A break of the recent high at 32240 should result in a further move higher.
The primary trend remains bullish.
We look to Buy a break of 32266 (stop at 32086)
Our profit targets will be 32716 and 32816
Resistance: 32240 / 32400 / 32600
Support: 32150 / 31900 / 31750
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
Nikkei to find support at weekly pivot?NIK225 - 24h expiry
Although the bulls are in control, the stalling positive momentum indicates a turnaround is possible.
A lower correction is expected.
We prefer to consider the medium term trend and expect buying interest to support as prices move lower.
Weekly pivot is at 30753.
Further upside is expected although we prefer to buy into dips close to the 30750 level.
We look to Buy at 30750 (stop at 30570)
Our profit targets will be 31190 and 31280
Resistance: 31410 / 32200 / 32610
Support: 30300 / 29710 / 29295
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
JP225 to see a lower correction?NIK225 - 24h expiry
We are trading at oversold extremes.
A higher correction is expected.
This is positive for sentiment and the uptrend has potential to return.
The 50% Fibonacci retracement is located at 30124 from 28893 to 31355.
Further upside is expected although we prefer to buy into dips close to the 30125 level.
We look to Buy at 30125 (stop at 29925)
Our profit targets will be 30625 and 30725
Resistance: 31410 / 32200 / 32610
Support: 30300 / 29710 / 29295
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
Nikkei dips continue to attract buyers.NIK225 - 24h expiry
Selling pressure from 29249 resulted in all the initial daily gains being overturned.
The current move lower is expected to continue.
The bias is still for higher levels and we look for any dips to be limited.
The trend of higher lows is located at 28562.
Preferred trade is to buy on dips.
We look to Buy at 28805 (stop at 28665)
Our profit targets will be 29155 and 29215
Resistance: 29295 / 29710 / 30300
Support: 28505 / 27880 / 27395
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
Nikkei to stem dip?NIK225 - 24h expiry -
Selling pressure from 28805 resulted in all the initial daily gains being overturned.
The current move lower is expected to continue.
The bias is still for higher levels and we look for any dips to be limited.
We therefore, prefer to fade into the dip with a tight stop in anticipation of a move back higher.
Further upside is expected although we prefer to buy into dips close to the 28330 level.
We look to Buy at 28331 (stop at 28175)
Our profit targets will be 28725 and 28785
Resistance: 29295 / 29710 / 30300
Support: 28505 / 27880 / 27395
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
Nikkei looking for a temporary move lower?NIK225 - 24h expiry - We look to Buy at 27855 (stop at 27635)
We are trading at overbought extremes.
A lower correction is expected.
The bias is still for higher levels and we look for any dips to be limited.
The hourly chart technicals suggests further downside before the uptrend returns.
Further upside is expected although we prefer to buy into dips close to the 27855 level.
Our profit targets will be 28495 and 28595
Resistance: 28505 / 29295 / 29710
Support: 27880 / 27395 / 27050
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
Nikkei remains a long.NIK225 - 24h expiry - We look to Buy at 28098 (stop at 27940)
Price action continued to range between key support & resistance (25535 - 28653) and we expect this to continue.
Short term bias is bullish.
Bespoke support is located at 28098.
Preferred trade is to buy on dips.
Expect trading to remain mixed and volatile.
Our profit targets will be 28469 and 28509
Resistance: 28276 / 28588 / 28731
Support: 28098 / 27864 / 27629
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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JPN225 Index: Long Entry Opportunity after Touching ResistanceGreetings, fellow traders! Today, we'll take a closer look at the JPN225 index . On the four-hour timeframe, we can see that the index has recently touched its resistance level and is now retracing. This presents a potential opportunity to enter a long position in anticipation of a bullish move. My analysis suggests that the index is likely to continue its upward trend soon, providing a profitable trading opportunity.
As always, we remind our readers that this view is for educational purposes only and should not be taken as trading or investing advice. We recommend consulting with a financial advisor before making any investment decisions. Remember, in trading, price is the king of the market.
Thank you, and happy trading!
Regards,
Alpha Trading Station
JAPAN225 5th MARCH 2023The JAPAN225 (Nikkei index) is close to a significant resistance area, the possibility of a reversal or a change in the direction of the uptrend to a downtrend will increase. This is because a resistance area is a price level that has been tested before and successfully prevented the price from rising, so there is a possibility that this level will once again act as a strong resistance level and prevent the price from continuing to rise.
In addition, market conditions and investor sentiment can also affect the possibility of a reversal. If there are concerns or uncertainties in the market, investors tend to take a cautious approach and take profits from previous price increases, which can trigger significant selling pressure and selling off. This can trigger a reversal and result in a downward trend in the Nikkei index.
Reversals do not always occur every time the price approaches a resistance area. If there is strong momentum and strong fundamental support, the Nikkei index can continue the uptrend and break through the resistance level. Therefore, it is important for traders and investors to conduct careful technical and fundamental analysis to identify potential reversals and consider the risks and opportunities associated with trading in the Nikkei index.
