The weaker the pound gets the stronger this gets. I dont see the pound strengthening anytime soon.
Ill wait for long take profits at this level and then a resumption of the uptrend for break and pullback.
1. Strong downtrend line has been broken to the top.
2. 3 rejections at 100 indicates a strong bottom
3. Are of confluence. Swing point + downtrend line
Ill wait for a reversal signal at that level.
Reason for bias:
1. Obvious downtrend on hourly
2. Bullish USD sentiment (Most important imho)
3. FIB level lines up perfectly with pullback zone 2
4. Zone 1 is a strong level with prior support and resistance.
Reason for long bias:
1. Clear uptrend
2. Weaker yen means better returns for listed companies therefore this index should strengthen?
Reason not to take:
1. clearly a range has formed. so we might get a reversal to 1640
How will I play this?
If price breaks my 16894 level then I will be looking for signals to go long.