Well ... we are one step over the precipice. The market is waiting for another #QE made in Japan. I hope that the strengthening of the yen is temporary and sell signals will be canceled.
Yen and Nikkie are USUALLY inversely correlated. Watch these two relationships carefully. I expect the Nikkei to decline by at least 4% before bouncing upward.
Nikkei/USD Dec futures is consolidating between 19275 and 18675 level for the past four trading session.
The index is facing major resistance around 19340 (200 day MA) and any close above this level will confirm short term bullishness, a jump till 19800/20000 cannot be ruled out .
On the downside the index support is around 18900 and below this level it will...
I'm still bullish on the Japan. QE /made in #Kuroda/ pushes indexes higher and higher. Rumor has it the new QE in October /after FED #ratehike??/.
thepatternsite.com
Potential flag formation failure in the daily chart. The hourly chart shows the possible top. On the other hand above 20650 the bull trend will resume.
