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Lanmar
Mar 24, 2017 2:18 PM

PAY EXTREME ATTENTION TO JAPANESE EQUITIES 

Nikkei 225 index of Japanese listed sharesFXCM

Description

Alright friends. What we have here is perfection in terms of alignment. Forget the Yen. Follow the Nikkei 225. First of all, they historically have an extremely high positive correlation (.92 in the past month which is completely normal for the two assets), therefore, it's likely both will follow the other (not necessarily, but LIKELY).

Let's move on. The goal here is to buy in the 17000's. Hopefully, we see a retracement at the .618 level post intraday breakdown (as shown above) and we move lower in the next few days or week. Below is the long-term projection to be aware of. If we see a break above the yellow, we could see a major alignment failure for a correction. Because this would be categorised as unlikely, it would be a major breakout. Either way, the long-term direction is up. Will repeat. Buy in the 17,000s. Good luck with execution.

Daily Patterns:


Monthly Patterns:




Previous analysis:

Comment

Looking at a possible breakout to the upside.
Comments
Genghis
Looks great set up chief
Lanmar
@Genghis, Thanks bud
Genghis
Favour selling the rally here as you've picked out
Genghis
a matter of pips away...
Lanmar
@Genghis, Yeah. Could be a fake out too.. Looks strong though.
eYoshiwatusi
not too far away now
Lanmar
@eYoshiwatusi, It's coming Yoshi ;)
Genghis
@Lanmar, its game time brother...
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