Nikkei: Bearish confluenceThere's a potential 8 bar downtrend about to confirm here.
If we see a swift move down from this level, we can expect the Nikkei to travel down, and fast.
Technically, you can enter shorts now, with a tight stop, but the 8 bar signal isn't confirmed yet.
Target on chart, for now an estimation, but possible.
Wait for confirmation if trading it. Might offer good clues for the yen traders too.
Thanks to Tim West for bringing it back to my attention yesterday.
Good luck,
Ivan.
Japan 225
GBPJPY: Target reached ahead of time, fade the euphoriaAnalysis on chart. Simple setup, I expect the larger moves to come tomorrow but it's worth monitoring GBP pairs for a short.
Timer about to expire for the last uptrend signal, very nice divergence setting up in CCI.
Short under the highest low.
Good luck!
Ivan.
NIKKEI Short Term Elliott Wave Analysis 5.4.2015Short term Elliott Wave view suggests pullback to 19348 completed wave ((X)). From this level, rally in wave (a) is taking the form of a 5 waves diagonal when wave i ended at 19570, wave ii ended at 19405, wave iii ended at 19775, wave iv ended at 19620, and wave v of (a) is in progress towards 19851 – 19906 equal leg area. After wave (a) is complete, index is expected to pullback in wave (b) and can test 50 – 61.8 fib retracement of wave (a) before the rally resumes. If wave (a) ends at 19851 equal leg, then wave (b) pullback can test 19541 – 19600 (50 – 61.8 fib retracement). We don’t like selling in the proposed wave (b) pullback and expect wave (b) dip to find buyers as far as pivot at the 19348 low remains intact.
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Twitter: cmellon1976
Website: elliottwave-forecast.com
GBPJPY: Extended fifth wave advance and time at mode short setupWe can observe a clear five wave advance from the lows, with wave 5 being the largest, almost reaching 1.618 of the distance from point 0 to wave 3 high, which is the typical distance wave 5 travels.
These extended fifth waves often produce a very sharp and steep retracement that swiftly moves price down to wave 5's second wave, or even wave 4 of the whole advance.
Rgmov is showing clear divergence, which is a strong bearish signal, while we also observe a time at mode uptrend target expired, and one more larger timeframe target about to expire at the open on Sunday.
I'll place a short fine tuning the entry from the 1h chart on Sunday.
Good luck!
Ivan.
USDJPY: price at the daily mode - bar by bar analysisUSDJPY offers an attractive short trade, as long as it stays under the daily mode level at 119.635.
I'm looking to short under the previous hourly low for the time being, with a very tight stop to maximize returns.
We can place a reverse position above the resistance line, in case it reverses and continues to range. It's a good way to hedge against unexpected volatility.
Will update with an entry.
Update:
Daily roadmap:
If this level doesn't hold now, I suspect we might see some bullish continuation, exploring the upper end of the range.
Said and done...Now, waiting to figure out what to do. Either buy a correction, or sell OS.
CADJPY: UpdateSeems like this pair will offer a perfect short opportunity anytime now.
As depicted in the chart, we can see that price reached a critical resistance level after completing an AB=CD pattern from the low to the sideways correction start and end.
I'll post if I find a good entry opportunity with good risk/reward ratio asap.
If aggressive, you can short now under the low and target the horizontal red dashed line for taking partial profits, but I prefer to wait for a cleaner entry, fine tuning from the 4h and 1h charts.
Keep in mind that Gov. Poloz is speaking tomorrow, in 8hs from now, so the market might wait for that event to increase momentum and turn one directional.
Good luck!
Ivan.
Update:
Seems like the perfect short entry is near:
Taking a small position with a tight stop once time expires.
China cuts reserve requirement ratio #Nikkei #Japan #stocks Last Friday we saw a sell off in the market. The News telling us that's it because new trading regulations in China and a possible Grexit (Greece could leave the euro zone).
Today China's reaction to the sell off is to cut the reserve requirement ratio (RRR) for all banks by 100 bp (1 percent).
It is the second reduction in two months.
China has taken this step to boost growth (fight slowing growth) by reducing the amount of cash banks must hold.
This simply means more fuel to invest in stock market.
I buy Nikkei at 19330
GBPJPY update: targetsAn addendum to my previous 'Waiting for the perfect short' chart.
This chart describes the different projection techniques that I used to determine targets and potential retracement zones in this pair.
I'm short from 177.569, with a break even stop and will scale in every chance I get.
This corrections will be easily foreseeable using time at mode in lower timeframes, and I'll update with them in due time.
I expect to hold this trade open until the weekly signal expires at least.
Possible Long Nikkei at 19250 Target 20000This chart show us a pretty steady upward trend. At the moment we are in a kind of consolidation/pullback situation. I think we will test the 20000 mark next days. But a pullback to 19000 is also possible. But then I'm thinking of a possible double top scenario.
Three more fundamentals which support my projections are:
Japan's trade deficit declined, exports rose by 2.4 pct and imports dropped by 3.6 pct
Japanese Inflation Rate drops further in February 2015 to 2.2 percent from 2.4
Unemployment is at 3.5 percent in February, slightly down from 3.6 percent
GBPJPY: Waiting for the perfect shortAs the title describes, I'll publish a suggested short entry once my setup confirms.
For the time being observe the price action and how the selling is outweighing the buying on each swing.
This is inherently bearish, and to make things worse for the bulls, Tim West's proprietary indicator RgMov is plotting new lows and a strong downtrend on the daily chart, ahead of price which is currently ranging. The weekly chart shows intense coiling, which will eventually lead to an explosive move to the down side.
I'll update the chart with entry, exit and stop loss values once it confirms.
Cheers,
Ivan.
THE BIG BUBBLE_QE EFFECTS FROM BEGINNING_NOVEMBRE 2008The Big Bubble ... as every time this time is different ... it's true this time the outbreak was unprecedented...
QE effects from the beginning - start end 2008
S&P(orange) +186% - USD/JPY +22% USD/EUR +15%
Nikkei (blue Mountain) +165% JPY/USD -22%
FTSE100(blue points) +80% GBP/EUR +21% GBPUSD+3%
DAX(green points) +201% EUR/USD -15%
MIB Italy( brown points) +46% EUR/USD -15%
.. also in financial bubbles economic gaps are maintained . Strong correlation between S & P and DAX and the moment when the first QE American had exhausted its strength ( with the devaluation of the dollar vs yen ) , new push came from QE Japanese ABE ( with svlutazione the yen vs the dollar) . Stronger seems the effect of QE UK as a steep and steady growing index tied to a currency like the pound which has always maintained its value both against the dollar and the euro . The Europe is Germany and dax..il benefits from the propagation effects on other markets like Italy ... is ever fail to put and push the economy and to hold this system after inflating a bubble like this...
Short Nikkei : Bearish Crab : Gap AheadShort Nikkei with bearish crab completing in between 19139 to 19756 (also a gap ) and a trendline resistance at 19139.
Short Nikkei and long XAUUSD
Nikkei getting back on track againNikkei seems to get back in line again after a short breakout on the downside meeting the EMA62.
In order to continue it's trend it needs to stay between the two grey lines which were formed in the beginning of January.
I am long with a first target at 19000.
SL just below the EMA62
Feedback/Ideas?
Looking to Short the Nikkei 225 IndexNikkei 225
- Clear Bearish Divergence (Price making higher highs while RSI is making lower highs).
- I am interested in Shorting the Index if it breaks 17093 ( the most recent swing low).
- On a break of the lows and the trendline, I will wait for a pull back to re-test the level again then issue my short position to 16425 area.
- The trend remains bullish. This is a counter trend trade.
A fall in Japan Equities will yield a fall in USDJPY GBPJPY EURJPY as it will signify Yen strength. So look for similar opportunities in the Yen Pairs.
SP500 below 1.000 within April 2016....Looking at the tops of 2000, and 2007, it is interesting to see where we are 06. Nov 2014 in price and time related to these two former tops.
Calculating the time from the Sept. 2000 to the October 2007 top, and then extend the 85 bars from 2007 to November 2014. Markets can be due for longer correction. Adding the pitchfork shows the index streched on price.
The downmove in 2000 took the SP500 - 48% in 668 days. The downmove in 2007 took the SP500 - 56% in 518 days. If we calculated the shortest move in price and time, markets can end up below 1.000 within March of 2016. Comments?
Short Nikkei 225, D, CME (NYI): Pullback DueThe Nikkei 225, D (NYI) is due for a pullback with all major indicators already exiting overbought condition.
Last week's advance is beginning to show signs of a reversal as investors move to take profits. Short Nikkei 225, D, (NYI). Stop loss at 17570, take profit at 16120.
JAPAN ANNOUNCES BIG JUMP IN ASSET BUYINGJapanese authorities surprised everyone on Friday by increasing their already aggressive bond purchases (QE) by a third. In addition, it will expand those purchases to include stocks and real estate investments. The Japanese pension fund also announced that it will increase its allocation to domestic and foreign stocks. That gave a huge boost to global stocks. The most dramatic effect was seen in Japan. Chart 1 shows the Japanese yen tumbling to the lowest level in seven years. At the same time, the Nikkei Index surged nearly 5% to the highest level in seven years. We've pointed out many times before that the falling yen since the end of 2012 has been the main driving force behind Japanese stock gains. That was certainly the case again this week. The monthly bars in Chart 2 show the Nikkei also climbing above a major resistance line drawn over its 1996, 2000, 2007 highs. That upside breakout suggests that Japanese stocks may finally be emerging from their role as one of the world's weakest stock markets. Since the start of 2013, the Nikkei has risen 57% versus a 28% gain in the Vanguard All World Stock Index (and a 41% gain in the S&P 500). Japan is trying to emerge from nearly two decades of deflation. The latest Japanese inflation figure of 1% is only half of the target rate of 2%. It still has a ways to go.
Nikkei at f5 resistance / big channel retestCurrently Nikkei is at resistance of a f5 and a level in which was previously retested in line chart.
It was also halted at the channel trendline.
A successful test at h1 will be meaningful but unfortunately I do not have access to h1 charts for futures.
However this can be translated to other JPY crosses and I also see similar distribution patterns on these crosses.
$NIKKEI - The Ending Diagonal - Abenomics Part II.'On last Thursday, Kuroda met with Prime Minister Shinzo Abe and assured him that he would do more if needed, especially if the BOJ is still failing to meet its 2 percent inflation target.
"Should conditions emerge where the target becomes difficult to meet, we are ready to make without hesitation adjustments to policy, additional easing or whatever," Kuroda told reporters after the meeting. '
Yen weakens, the Nikkei growing. Land of the Rising Sun not yet said the last word.
The next BOJ meeting ist on Oct. 6-7. Until then, the market will live in hope.
www.cnbc.com
www.elliottwave.com
NIKKEI 225 4h Diagram Technical Analysis Training The NIKKEI 225 Japan Index (JPN225) 4h Diagram Technical Analysis Training shows the following:
The JPN225 index has made a reaction from EMA 200 towards to Kijun Sen and then it declined towards again to EMA 200, finding support at Tenkan Sen. The index is into the KUMO.
So the first think in mind is that JPN225 is into the KUMO without a clear trend.. MACD & RSI are both trying marginally bullish.
We have no special candlestick pattern.
There is no special diagram pattern.
So the only think we have is the resistance line. Long above it and of course above Kijun Sen, stop loss or short under the EMA 200 or KUMO (the KUMO has twisted).