Nikkei preparing for its next BIG leg down to 29,330?From the last UPDATE - The Nikkei formed an extensive Rectangle Formation with an M Formation in the interim.
We then had a large correction which has now resulted in a somewhat recovery. However, is the recovery on the way or are we just waiting for the next big down leg on the markets.
Let's look at the fundamentals first
1. 📉 Profit-Taking After Record Highs
Investors are cashing in after Nikkei hit all-time highs in March.
2. 💴 Stronger Yen Pressures Exporters
A rising yen hurts Japanese exporters like Toyota and Sony.
3. 🏦 BOJ Policy Shift Fears
Markets worry the Bank of Japan will tighten policy further after ending negative rates.
4. 🌍 Global Risk-Off Sentiment
Tensions in the Middle East and weak global data make investors nervous.
5. 📊 Overbought Technicals
Charts show the index was overbought — a correction is natural.
M Formation
Price<20 and 200
Target 29,330
Let's see if this one plays out as I don't think we are out of the doldrums yet.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
