From the last UPDATE - The Nikkei formed an extensive Rectangle Formation with an M Formation in the interim.
We then had a large correction which has now resulted in a somewhat recovery. However, is the recovery on the way or are we just waiting for the next big down leg on the markets.
Let's look at the fundamentals first
1. 📉 Profit-Taking After Record Highs
Investors are cashing in after Nikkei hit all-time highs in March.
2. 💴 Stronger Yen Pressures Exporters
A rising yen hurts Japanese exporters like Toyota and Sony.
3. 🏦 BOJ Policy Shift Fears
Markets worry the Bank of Japan will tighten policy further after ending negative rates.
4. 🌍 Global Risk-Off Sentiment
Tensions in the Middle East and weak global data make investors nervous.
5. 📊 Overbought Technicals
Charts show the index was overbought — a correction is natural.
M Formation
Price<20 and 200
Target 29,330
Let's see if this one plays out as I don't think we are out of the doldrums yet.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
We then had a large correction which has now resulted in a somewhat recovery. However, is the recovery on the way or are we just waiting for the next big down leg on the markets.
Let's look at the fundamentals first
1. 📉 Profit-Taking After Record Highs
Investors are cashing in after Nikkei hit all-time highs in March.
2. 💴 Stronger Yen Pressures Exporters
A rising yen hurts Japanese exporters like Toyota and Sony.
3. 🏦 BOJ Policy Shift Fears
Markets worry the Bank of Japan will tighten policy further after ending negative rates.
4. 🌍 Global Risk-Off Sentiment
Tensions in the Middle East and weak global data make investors nervous.
5. 📊 Overbought Technicals
Charts show the index was overbought — a correction is natural.
M Formation
Price<20 and 200
Target 29,330
Let's see if this one plays out as I don't think we are out of the doldrums yet.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
✅ Facebook:
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
✅ Facebook:
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.