Technical Outlook for JAP 225 After Key Support Bounce
The Nikkei 225 Index, commonly known as JAP 225, represents the performance of the top 225 publicly traded companies in Japan, offering traders significant exposure to the Japanese economy. The JAP 225 currency pair primarily reacts to fluctuations in the Japanese Yen (JPY) influenced by crucial economic releases like Japan’s Core Consumer Price Index (CPI), excluding fresh food, and central bank communications. Today’s fundamental outlook is highly impacted by the latest CPI data release, where a higher-than-expected figure typically strengthens the Yen due to expectations of tightening monetary policies from the Bank of Japan (BOJ). Furthermore, BOJ Governor Kazuo Ueda’s upcoming speech at the National Association of Shinkin Banks annual meeting could provide additional hawkish signals, influencing currency strength and volatility, and consequently affecting JAP 225 movements significantly.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Analyzing the Nikkei 225 H4 technical chart, the price action demonstrates an ascending channel pattern. Recently, the price has bounced from the lower boundary of this channel, confirming a crucial support line that previously acted as resistance. Currently, a bullish green candle accompanied by an upward gap suggests momentum targeting the upper channel line. The Parabolic SAR indicator indicates a bullish momentum by positioning below the candles, reinforcing a potential upward continuation. Additionally, the Relative Strength Index (RSI) at around 56 indicates moderately bullish market sentiment, offering further room for price appreciation. Meanwhile, the Stochastic Oscillator, trending upward from oversold levels, confirms strengthening bullish momentum, suggesting possible gains toward the upper boundary of the ascending channel.
•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
