Strong Ninja & Nikkei Under Bearish PressureJapanese Yen:
• The yen has strengthened as a safe-haven currency amid economic uncertainty.
• Foreign investors are withdrawing from Japanese markets, seeking safety in yen-denominated assets.
Nikkei 225:
• The Nikkei 225 recently fell by 5.5%, dropping 26.25% from the July highs, indicating a possible bear market.
• Contributing factors include profit-taking, a stronger yen, and cautious signals from the Bank of Japan about potential rate hikes.
• Poor corporate results from major companies like Toyota and mixed expectations for others like Sony and SoftBank have also impacted the market.
In essence, the yen's appreciation and significant declines in the Nikkei 225 reflect broader economic concerns and investor reactions to both local and global financial signals.
If we observe the chart, a correction has developed in both the Ninja and the Nikkei 225 since July 11. On Thursday, Friday, and today Monday, the figure of the three black crows has appeared in the candles. At the end of an uptrend, this indicates a trend change to a downtrend. If the three crows appear in the middle of a downtrend, the formation loses reliability, as it could mean exhaustion of the trend. In this case, it seems to be seeking a return to the area where the upward movement began on October 31, 2023. The RSI shows an oversold condition at 18.44%, and the price bell curve indicates that the most traded price places the Point of Control (POC) at approximately 38,546 points, well below the current line of 31,475 points. It is possible that this correction is temporary and that the Nikkei will regain positions as soon as the Ninja stabilizes in a zone of stability.
Ion Jauregui –ActivTrades Analyst
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