I'm republishing this chart from 9 months ago. looking at the Nikkei futures now ( 10:42 E.S.T), they are down 2.25 % . The Nikkei briefly broke above its second resistance , but has retrace down since. We can observe the same for the Yen futures ( support held) . What does this mean exactly ? well the correlation between the SP 500 and Nikkei ( using 100 day...
- Having trouble closing above the June 18th high (Where the Fed brought forward their view on when rates would be hiked)
- Also running into resistance of the broken uptrend line that supported the rally from June.
- 15,000 is a key psychological level that will need a convincing break and close above.
- Negative divergence on the MACD also contributing to the...
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The charts show that both the Nikkei and Yen are at crucial points. The Nikkei is at resistance, while the yen is at support. Based on previous price action, this data may suggest that it may be time to long the YEN .
Cheers
Algo
Yen is set to soar in coming months. There is a strong correlation betweeen Nikkei and yen as pointed out to me by @MA3STRO. Nikkei is forming an ideal triangle and this looks like a 4rth wave confirmed with no divergence yet in RSI.
Bearish TS KS cross, SAR to the topside supporting downtrend. US equities closed lower overnight and volumes low. Expect volatile swings with expected heavy selling.
For weeks I've been reading that the Nikkei, which has shown an explosive increase in its volatility the last few weeks, is due precisely the fears of U.S. Federal Reserve taping to reduce the bund purchases that are now of 85 billions per month .
While it is true that a reduction in bond purchases would tend to shoot upward the bond rates also is true that this...
The Nikkei is approaching historical resistance again. Are we expecting a significant correction ( 32 - 60 %) ??? What does it mean for the Yen ??
Cheers
Algo
As Kuroda's main kamikaze-aim is to trash the Yen @ a rate of 60 bln$ per month, by pushing inflation regardless of the risks, the Nikkei is acting in a full Giffen good move heading to 16k. It would not be the first time for June to become a top for the Japanese equities. Weekly RSI @ 94 is way overbought and unprecedented in at least 20yrs.
We are long due to the bias from the government support, however as we edge closer to the noted levels we are going to see some level of sideway movement if not correction.
Attack this market on the LONG side .. while onlookers stare in shock and awe & stay on the sidelines ... KEEP BUYING. No reason for this market to give back gains .. imo BOJ will expand QE programme into larger purchases of index linked ETFS & other equity related instruments.
I favour buying leading names in the N225 .. BANKS/ELECTRONICS/AUTOS/INDUSTRIAL...
