Nikkei getting back on track againNikkei seems to get back in line again after a short breakout on the downside meeting the EMA62.
In order to continue it's trend it needs to stay between the two grey lines which were formed in the beginning of January.
I am long with a first target at 19000.
SL just below the EMA62
Feedback/Ideas?
Japan 225
Looking to Short the Nikkei 225 IndexNikkei 225
- Clear Bearish Divergence (Price making higher highs while RSI is making lower highs).
- I am interested in Shorting the Index if it breaks 17093 ( the most recent swing low).
- On a break of the lows and the trendline, I will wait for a pull back to re-test the level again then issue my short position to 16425 area.
- The trend remains bullish. This is a counter trend trade.
A fall in Japan Equities will yield a fall in USDJPY GBPJPY EURJPY as it will signify Yen strength. So look for similar opportunities in the Yen Pairs.
SP500 below 1.000 within April 2016....Looking at the tops of 2000, and 2007, it is interesting to see where we are 06. Nov 2014 in price and time related to these two former tops.
Calculating the time from the Sept. 2000 to the October 2007 top, and then extend the 85 bars from 2007 to November 2014. Markets can be due for longer correction. Adding the pitchfork shows the index streched on price.
The downmove in 2000 took the SP500 - 48% in 668 days. The downmove in 2007 took the SP500 - 56% in 518 days. If we calculated the shortest move in price and time, markets can end up below 1.000 within March of 2016. Comments?
Short Nikkei 225, D, CME (NYI): Pullback DueThe Nikkei 225, D (NYI) is due for a pullback with all major indicators already exiting overbought condition.
Last week's advance is beginning to show signs of a reversal as investors move to take profits. Short Nikkei 225, D, (NYI). Stop loss at 17570, take profit at 16120.
JAPAN ANNOUNCES BIG JUMP IN ASSET BUYINGJapanese authorities surprised everyone on Friday by increasing their already aggressive bond purchases (QE) by a third. In addition, it will expand those purchases to include stocks and real estate investments. The Japanese pension fund also announced that it will increase its allocation to domestic and foreign stocks. That gave a huge boost to global stocks. The most dramatic effect was seen in Japan. Chart 1 shows the Japanese yen tumbling to the lowest level in seven years. At the same time, the Nikkei Index surged nearly 5% to the highest level in seven years. We've pointed out many times before that the falling yen since the end of 2012 has been the main driving force behind Japanese stock gains. That was certainly the case again this week. The monthly bars in Chart 2 show the Nikkei also climbing above a major resistance line drawn over its 1996, 2000, 2007 highs. That upside breakout suggests that Japanese stocks may finally be emerging from their role as one of the world's weakest stock markets. Since the start of 2013, the Nikkei has risen 57% versus a 28% gain in the Vanguard All World Stock Index (and a 41% gain in the S&P 500). Japan is trying to emerge from nearly two decades of deflation. The latest Japanese inflation figure of 1% is only half of the target rate of 2%. It still has a ways to go.
Nikkei at f5 resistance / big channel retestCurrently Nikkei is at resistance of a f5 and a level in which was previously retested in line chart.
It was also halted at the channel trendline.
A successful test at h1 will be meaningful but unfortunately I do not have access to h1 charts for futures.
However this can be translated to other JPY crosses and I also see similar distribution patterns on these crosses.
$NIKKEI - The Ending Diagonal - Abenomics Part II.'On last Thursday, Kuroda met with Prime Minister Shinzo Abe and assured him that he would do more if needed, especially if the BOJ is still failing to meet its 2 percent inflation target.
"Should conditions emerge where the target becomes difficult to meet, we are ready to make without hesitation adjustments to policy, additional easing or whatever," Kuroda told reporters after the meeting. '
Yen weakens, the Nikkei growing. Land of the Rising Sun not yet said the last word.
The next BOJ meeting ist on Oct. 6-7. Until then, the market will live in hope.
www.cnbc.com
www.elliottwave.com
NIKKEI 225 4h Diagram Technical Analysis Training The NIKKEI 225 Japan Index (JPN225) 4h Diagram Technical Analysis Training shows the following:
The JPN225 index has made a reaction from EMA 200 towards to Kijun Sen and then it declined towards again to EMA 200, finding support at Tenkan Sen. The index is into the KUMO.
So the first think in mind is that JPN225 is into the KUMO without a clear trend.. MACD & RSI are both trying marginally bullish.
We have no special candlestick pattern.
There is no special diagram pattern.
So the only think we have is the resistance line. Long above it and of course above Kijun Sen, stop loss or short under the EMA 200 or KUMO (the KUMO has twisted).
Nikkei 225 Index Daily (17.08.2014) Tribute to EMA(50,100,200))This week we will see the EMA (50,100,200) and MACD,RSI for various diagrams.
The Nikkei 225 Index (JPN225) Daily Diagram Technical Analysis Training shows the following:
The JPN225 index has made a correction decline last two weeks and it reacted exactly on EMA 100/200 last week. There is a sense of bull market because EMA 200 support EMA 100 (first circle) and we had a crossed of EMA50/EMA100 (second circle).
MACD is ready to give a bull sign on Monday getting itself above the zero line. RSI > 50.
The fib has a 1.618 next target at 15934. Long for it. Stop loss under the EMA 50 or 15179.
Nikkei 225's Potential Bearish Configuration - Is WorrisomeThis chart and my conclusion based on my analysis might be very perplexing to many Fundamental Analysts and to Japan's Prime Minster Abe as net results of his 3 prong attack fails to produce desired results.
Many, bullish fund managers will be mystified as was the case in 1992 when the initial decline of all time high was only seen as just a setback and a buying opportunity.
I say it is worrisome as Nikkei Index has close correlation both positive and negative to many financial markets including many developed Equity Markets of Western World.
Whilst at present it seems now that nothing can go wrong from rising equities worldwide, Nikkei Index does not seem to support the view.
Watch the Youtube video entitled " Where To From Here - for the financial markets?" that goes into extensive explanation of my reasoning and discover wider implication. Video link : youtu.be
It is long but sure you will find value in the material.
NIKKEI 225 4H (03.08.2014) Technical Analysis Training The NIKKEI 225 Japan Index (JPN225) Daily Diagram Technical Analysis Training shows the following:
The JPN225 index has made a sharply decline towards to KUMO cloud last week under the resistance line. The weekly diagram is bullish and monthly diagram is turning bullish.
So the first think in mind is that JPN225 finds support from KUMO. MACD & RSI are bearish.
We have no special candlestick pattern except that index closes at lows.
There is no special pattern. The fib shows the target levels.
Stay aside until it get above the resistance line and then long for 15513 first. Otherwise short under KUMO and EMA 200 (4h).
NIKKEI 225 4H (28.07.2014) Technical Analysis Training EUSessionThe NIKKEI 225 Japan Index (JPN225) Daily Diagram Technical Analysis Training shows the following:
The JPN225 index has made an uptrend movement above the KUMO cloud last week above the Tenkan Sen (light green line) and Kijun Sen (blue line) too. The weekly diagram is bullish and monthly diagram is turning bullish.
So the first think in mind is that JPN225 has a promise setup for more uptrend as it has breached the resistance line of the top of the ascending triangle. MACD & RSI are bullish.
We have no special candlestick pattern.
There is no special pattern except of the the previous ascending triangle. The fib now starts a new wave so we cannot design a measurement but you can add 15460+456 = 15916 as the first next target.
Long JPN225 with stop loss under the resistance line.
The First Target (Weekly) has accomplished for Nikkei 225I had mention to my weekly tech analysis (link related idea below) that the first target for JPN225 was 15054. Now the index has to get over the Kijun Sen of the weekly chart but....
In the daily diagram that I see Chikun Span gets over the KUMO already (look at first light blue circle) and the SPAN A gets over SPAN B (Second light blue circle.)
If you take in thought that USDJPY is bullish then these together gives a bullish force to TOKYO.
NIKKEI 225 Weekly (22/2014) Chart Technical AnalysisThe NIKKEI 225 (JPN225) weekly chart shows the following signs:
Exactly from 6/2013 NIKKEI had been in two channels with different trends. Now it seems to change the trend one more time for upwards. Technically RSI>50 and MACD will be bullish on Monday. Last week the Index with a long candle got over the Tenkan Sen. Next target it seems to be the Kijun Sen at 15054. As you can see in diagram the KUMO offered a strong support to the Index.
I am bullish for NIKKEI except if it returns into the KUMO cloud with a new support line.
Nikkei 225 in Critical Point Daily (Weekly is more possitive)The Nikkei 225 Index (JPN225) is in critical point just on the top o KUMO, with long signals from MACD and RSI. The weekly chart of JPN225 is more positive because is over the KUMO and it tries to reach the Kijun Sen.
The JPN225 will force the bullish movement If it get over the KUMO the next days. Otherwise some more consolidations is in favor in the cloud. If it gets over the cloud it will brake the downtrend channel and that would be another strong bullish indicator.
Fundamental Bears Before Technical Bulls | $USD $JPY #BOJ #ForexFriends,
As the stock market is turning increasingly wary and talk of a market crash abound, other risk aversion behaviors have transpired through Forex pairs. Here, in particular, USDJPY fell significantly, keeping lower supports exposed.
PREDICTIVE ANALYSIS/FORECASTING DATA:
Predictive analysis and forecasting system remains bearish in the short-tern, but bullish to neutral in the longer-term, suggesting a nearing of support. Defined ranges are:
1 - 101.198, high-probability hit
2 - 101.010, moderate probability hit
3 - 100.816, low-probability hit.
PROP PATTERN FORECAST DATA:
A separate proprietary pattern has defined support at 100.944, thus concentrating a PRZ in the lower end of the predictive analysis and forecast.
FUNDAMENTAL DATA:
A lower drift in the pair without BOJ intervention is foreseeable for the time being, as Kuroda has opted for a watchful stance with no rate change for the time being. The historical tax hike impact on consumer behavior will require time to absorb the data, which is expected to be bearish. However, fundamental opinion is that a Japanese intervention in rate or bond purchase action won't happen until a critical mass of fundamental data justify it - Here is a good read on this from Mr. Ashraf Laidi:
- www.cityindex.co.uk
Weighed against a slow improvement in US economic data, the net outcome is expected to be supportive of a rally.
OVERALL:
For the time being, my predictive analysis/forecasting system calls for further downside, defined at a shallow distance from Friday's close. Fundamental data lends support to a rallying over the next several weeks, based on a relative improvement in the US employment, as well as a probable intervention of sort from BOJ, as the historical tax hike is likely to further deteriorate the consumer side, while the Japanese economy might turn to export facilitation through an easing intervention that would turn its currency value more palatable to foreign consumers.
One might also consider a prior discussion on reflexive support of the USD, as China's Yuan continues to fall, pressing other export-dependent competitors to adjust their currencies downwards as well. But this currency down-push can only occur by reflexively up-pulling the Dollar lever. Or is there another liquid reserve currency available?
- Answer is: No.
Cheers,
David Alcindor
Predictive Analysis and Forecasting
Get my signals, analyses and forecasts on Twitter:
(Alias: @4xForecaster)
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Disclaimer:
- All my comments are founded on unshared proprietary as well as common knowledge of technical analysis: Do your own due diligence before trading any market/asset. Additionally, my signals, forecasts, analyses and directional opinions are for educational purposes only and are not trading recommendations. Again, do your own due diligence first, then seek financial advice from a licensed professional, and only then enter the market at your own perils - David Alcindor - TradingView.com Alias: 4xForecaster