ShortI opened a short position this morning for the following reasons:
Weekly:
1) The price closed below 38,113 (key support area) with a large bearish engulfing candle.
2) The candle closed below EMA 21.
3) MACD is still in the bull zone, but the lines have crossed and clearly pointing to the downside.
Daily:
1) The price broke below the ascending parallel channel.
2) MACD has been showing negative divergence for a while.
3) The price is clearly below 39,000 which has been working as major support/resistance in the daily chart.
My overall bias for Japan 225 is bearish and I can see the price can move to 33,000. However,
my first trade set up is as below:
Entry: 38,170S/L: 38,965Target 1: 37,145
Risk:Reward: 1:1.35
It would have been better to enter when the 1H candle closed below EMA 21 on Friday but i was asleep. I am hoping 38,300 area works as strong enough resistance to keep the price down.
JPN225 trade ideas
Nikkei forming a bottom?NIK225 - 24h expiry
Daily signals for sentiment are at oversold extremes.
This is positive for short term sentiment and we look to set longs at good risk/reward levels for a further correction higher.
Preferred trade is to buy on dips.
The hourly chart technicals suggests further downside before the uptrend returns.
We therefore, prefer to fade into the dip with a tight stop in anticipation of a move back higher.
We look to Buy at 38080 (stop at 37643)
Our profit targets will be 39330 and 39660
Resistance: 39660 / 40720 / 42155
Support: 37705 / 36330 / 34955
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
Buying Nikkei at 38070 for a 1:8 R:R TradeHere is why we want to trade this trade:
1) The low of last weekend is at 38050
2) There is a harmonic pattern with its stop loss at this level (patterns turn here also)
3) There is a lot of divergence now
4) Strong support at the 38000 level
This pair moves really fast so a 200 pip stop loss is imperative.
#011 Trust The Process JP225JPY 1619SGT 20022025I took JPY instead of USD because why would I want to take USD when I could free up USD for other positions?
I placed my TP at 1.22R instead of 1.5R because I have no idea why my position size SL is at 3k+ when I set it to 5k. I then entered on additional position and now my position is oversized.
1.5R TP equates to 9k+ LOL.
So, I placed my TP at 1.22R to get 7K TP.
1621SGT 20022025
JPN225 at Major Support Level – Bullish Rebound ExpectedPEPPERSTONE:JPN225 reached a significant demand zone, marked by prior price rejections and strong buying pressure. This area has historically acted as a key support zone, indicating the potential for a pullback if buyers regain control.
The current market structure suggests that if the price confirms a rejection from this demand zone, there is a high likelihood of an upward move. I anticipate that if rejection occurs, the market may head higher toward the 39,068 level, which represents a logical target within the current market structure.
If you agree with this analysis or have additional insights, feel free to share your thoughts in the comments!
Short I opened a short position today based on the 4H chart and daily chart price set up.
My reasonings are as follows:
Japan225 has been in the range bound since Sept 2024. The price peaked at 42,420 area and sharply dropped to 30,480 on the 5th August 2024.
The price started to recovered to 39,150 area on the 30th August 2024. Since then, that level is working almost like a magnet and the price has been moving between 37,500 and 40,400 for months and months. However, MACD has been very slowly forming negative divergence. Therefore, although the price is consolidating sideways, my bias for trade is more towards shorting, and I could see a good set up unfolding this morning.
Currently the daily candle is sitting right on the major support/resistance line. But when you look at 4H chart and 1H chart, the price has formed the double top, dropped below the major support/resistance line, rested and is now moving to the downside.
All 4H momentum indicators are in agreement and moving to the downside. (They are still in the bull territory so the downside move might be limited).
1H MACD and RSI have formed clear negative divergence and now entering to the bear zone.
Entry - 39,191
Stop Loss - 39,508
Targtet 1 - 38,820 (the previous week's mid price)
Target 2- 38,550 (Fib 0.786 area in 1H chart)
The price action of Japan225 has been really choppy and messy, so it might not be an ideal asset to trade at the moment. I day trade Japan225 every morning using 1min chart, so I am familiar with this asset, but probably there are easier ones to trade.
I just wanted to share my trade idea.
#005 Trust The Process JP225USD Buy 1543SGT 14022025Selling.
I took two USD positions, omg. Too bad. At least they were taking at slightly different timings.
40% breakeven is fantastic. anything about is great. Falling short is data.
Don't think of making money, just follow the system. This mindset shift took me many years, and I suffered.
1545SGT 14022025
NIKKEI FULL TRADE-ABLE SETUPSBelow are Dual-Scenario Trade Setups for three trader types—Short-Term, Swing, and Macro—based on the previously completed top-down technical analysis. Each category includes a Primary (Bias-Aligned) setup reflecting the overall bullish consolidation bias, plus an Alternate (Contrary) setup in case price breaks key levels and invalidates the primary scenario.
1. Short-Term Trader (Intraday to Multi-Day)
A) Primary (Bias-Aligned) Setup
• Rationale:
Aligns with the broader uptrend and the ongoing range support near 38,900–39,000 on lower timeframes. Looks for a short-term rally if price reclaims local resistance.
• Execution Parameters:
• Entry Trigger:
• Await a 1H candle close above ~39,300 (near local lower-high pivot).
• Look for an uptick in volume or a bullish engulfing bar on the 1H chart confirming momentum.
• Stop-Loss Placement:
• Under 39,000, just below the bullish order block / recent intraday support.
• Take-Profit Levels:
• TP1: ~39,500 (immediate overhead supply).
• TP2: ~39,700–39,800 (previous swing highs).
• Risk Management:
• Position size to risk 1–2% of trading capital, with an approximate 1:2 or 1:3 R:R ratio depending on final entry fill.
B) Alternate (Contrary) Setup
• Rationale:
Activates if the support region (38,900–39,000) fails, flipping short-term bias to downside momentum.
• Execution Parameters:
• Alternate Entry Trigger:
• Break and 1H close below 38,900, confirming invalidation of the bullish order block.
• Any retest that fails to reclaim 39,000 becomes a secondary entry.
• Stop-Loss Placement:
• Just above 39,100 to cover a potential reclaim attempt.
• Take-Profit Levels:
• TP1: ~38,600 (recent minor support).
• TP2: ~38,200 or deeper if intraday selling accelerates.
• Risk Management:
• Adjust position size for volatility around a breakdown; aim for a 1:2 R:R or better.
2. Swing Trader (Multi-Week)
A) Primary (Bias-Aligned) Setup
• Rationale:
Builds on the daily chart’s bullish structure near 38k support, looking for a potential run toward the 40k–41k resistance region.
• Execution Parameters:
• Entry Trigger:
• Daily close above ~39,500 with sustained volume, suggesting an attempt at the next resistance band (40k+).
• Bullish crossover on daily MACD or RSI crossing above ~55 can reinforce the entry.
• Stop-Loss Placement:
• Beneath 38,500 on a daily closing basis, below the recent consolidation floor to allow for volatility.
• Take-Profit Levels:
• TP1: ~40,000–40,200 (major daily supply zone).
• TP2: ~41,000 (upper band of daily range).
• Risk Management:
• Aim for a moderate position size, seeking a 1:2 or 1:3 R:R. Consider partial profit at TP1 and trailing stops thereafter.
B) Alternate (Contrary) Setup
• Rationale:
Triggered if daily price closes convincingly under 38k support, negating the bullish mid-range bias and opening downside toward deeper weekly support.
• Execution Parameters:
• Alternate Entry Trigger:
• Daily close below ~38,000, plus follow-through selling on the next session.
• This invalidates the bullish structure, suggesting a larger correction could unfold.
• Stop-Loss Placement:
• Above 38,800 on a daily closing basis, covering a possible reclaim of the broken support.
• Take-Profit Levels:
• TP1: ~37,000 (prior daily pivot and potential institutional demand).
• TP2: ~36,000 or lower if the weekly chart’s deeper support is tested.
• Risk Management:
• Use swing-sized position. Target a 1:2 R:R minimum, reducing or trailing stops near key fib or structural supports.
3. Macro Trader (Multi-Month to Longer-Term)
A) Primary (Bias-Aligned) Setup
• Rationale:
Leverages the long-term uptrend visible on the weekly chart, anticipating that consolidation near ~38k–39k eventually resolves to the upside toward prior highs (~42k).
• Execution Parameters:
• Entry Trigger:
• Weekly close above 40k, demonstrating a clear breakout from the consolidation range.
• Confirmation via weekly momentum indicators turning bullish (e.g., weekly MACD crossing positive).
• Stop-Loss Placement:
• Under 36k on a weekly closing basis, below major prior structure and the 100/200-week MAs.
• Take-Profit Levels:
• TP1: ~42,000–43,000 (historic weekly resistance).
• TP2: Potential extension beyond 45k if the bull trend accelerates.
• Risk Management:
• Lower leverage or a smaller position. Potentially add on retests of the breakout zone. Seek a 1:3 or better R:R over a longer horizon.
B) Alternate (Contrary) Setup
• Rationale:
Engaged if price fails at the top of the range and breaks down significantly below the multi-year trendline or major weekly support.
• Execution Parameters:
• Alternate Entry Trigger:
• Weekly close below 35,500–36,000, confirming the breakdown of the bullish structure from a macro standpoint.
• Negative slope on weekly MAs or a strongly negative MACD cross might reinforce the short bias.
• Stop-Loss Placement:
• Above ~37,500 on a weekly closing basis, allowing some volatility above the broken support region.
• Take-Profit Levels:
• TP1: ~32,000–33,000 (major prior pivot / weekly volume node).
• TP2: ~30,000 or lower if a full cyclical retrace unfolds.
• Risk Management:
• Employ conservative position sizing given the longer timescale. Aim for a balanced risk-reward approach, partial profit around TP1, and trailing stop for the remainder.
Summary of the Dual-Scenario Approach
• Primary Setups in each category lean bullish, reflecting the broader uptrend and stable support around 38k–39k.
• Alternate (Contrary) Setups engage only if key supports break or resistance strongly rejects price, confirming a structural shift.
This dual approach covers both sides of the market, ensuring readiness for continued consolidation/breakout to the upside or a sudden downside invalidation of the current range.
NIKKEI FULL-TRADEABLE SETUPS
1. Short-Term Trader (Intraday to Multi-Day)
A) Primary (Bias-Aligned) Setup
• Rationale:
Aligns with the broader uptrend and the ongoing range support near 38,900–39,000 on lower timeframes. Looks for a short-term rally if price reclaims local resistance.
• Execution Parameters:
• Entry Trigger:
• Await a 1H candle close above ~39,300 (near local lower-high pivot).
• Look for an uptick in volume or a bullish engulfing bar on the 1H chart confirming momentum.
• Stop-Loss Placement:
• Under 39,000, just below the bullish order block / recent intraday support.
• Take-Profit Levels:
• TP1: ~39,500 (immediate overhead supply).
• TP2: ~39,700–39,800 (previous swing highs).
• Risk Management:
• Position size to risk 1–2% of trading capital, with an approximate 1:2 or 1:3 R:R ratio depending on final entry fill.
B) Alternate (Contrary) Setup
• Rationale:
Activates if the support region (38,900–39,000) fails, flipping short-term bias to downside momentum.
• Execution Parameters:
• Alternate Entry Trigger:
• Break and 1H close below 38,900, confirming invalidation of the bullish order block.
• Any retest that fails to reclaim 39,000 becomes a secondary entry.
• Stop-Loss Placement:
• Just above 39,100 to cover a potential reclaim attempt.
• Take-Profit Levels:
• TP1: ~38,600 (recent minor support).
• TP2: ~38,200 or deeper if intraday selling accelerates.
• Risk Management:
• Adjust position size for volatility around a breakdown; aim for a 1:2 R:R or better.
2. Swing Trader (Multi-Week)
A) Primary (Bias-Aligned) Setup
• Rationale:
Builds on the daily chart’s bullish structure near 38k support, looking for a potential run toward the 40k–41k resistance region.
• Execution Parameters:
• Entry Trigger:
• Daily close above ~39,500 with sustained volume, suggesting an attempt at the next resistance band (40k+).
• Bullish crossover on daily MACD or RSI crossing above ~55 can reinforce the entry.
• Stop-Loss Placement:
• Beneath 38,500 on a daily closing basis, below the recent consolidation floor to allow for volatility.
• Take-Profit Levels:
• TP1: ~40,000–40,200 (major daily supply zone).
• TP2: ~41,000 (upper band of daily range).
• Risk Management:
• Aim for a moderate position size, seeking a 1:2 or 1:3 R:R. Consider partial profit at TP1 and trailing stops thereafter.
B) Alternate (Contrary) Setup
• Rationale:
Triggered if daily price closes convincingly under 38k support, negating the bullish mid-range bias and opening downside toward deeper weekly support.
• Execution Parameters:
• Alternate Entry Trigger:
• Daily close below ~38,000, plus follow-through selling on the next session.
• This invalidates the bullish structure, suggesting a larger correction could unfold.
• Stop-Loss Placement:
• Above 38,800 on a daily closing basis, covering a possible reclaim of the broken support.
• Take-Profit Levels:
• TP1: ~37,000 (prior daily pivot and potential institutional demand).
• TP2: ~36,000 or lower if the weekly chart’s deeper support is tested.
• Risk Management:
• Use swing-sized position. Target a 1:2 R:R minimum, reducing or trailing stops near key fib or structural supports.
3. Macro Trader (Multi-Month to Longer-Term)
A) Primary (Bias-Aligned) Setup
• Rationale:
Leverages the long-term uptrend visible on the weekly chart, anticipating that consolidation near ~38k–39k eventually resolves to the upside toward prior highs (~42k).
• Execution Parameters:
• Entry Trigger:
• Weekly close above 40k, demonstrating a clear breakout from the consolidation range.
• Confirmation via weekly momentum indicators turning bullish (e.g., weekly MACD crossing positive).
• Stop-Loss Placement:
• Under 36k on a weekly closing basis, below major prior structure and the 100/200-week MAs.
• Take-Profit Levels:
• TP1: ~42,000–43,000 (historic weekly resistance).
• TP2: Potential extension beyond 45k if the bull trend accelerates.
• Risk Management:
• Lower leverage or a smaller position. Potentially add on retests of the breakout zone. Seek a 1:3 or better R:R over a longer horizon.
B) Alternate (Contrary) Setup
• Rationale:
Engaged if price fails at the top of the range and breaks down significantly below the multi-year trendline or major weekly support.
• Execution Parameters:
• Alternate Entry Trigger:
• Weekly close below 35,500–36,000, confirming the breakdown of the bullish structure from a macro standpoint.
• Negative slope on weekly MAs or a strongly negative MACD cross might reinforce the short bias.
• Stop-Loss Placement:
• Above ~37,500 on a weekly closing basis, allowing some volatility above the broken support region.
• Take-Profit Levels:
• TP1: ~32,000–33,000 (major prior pivot / weekly volume node).
• TP2: ~30,000 or lower if a full cyclical retrace unfolds.
• Risk Management:
• Employ conservative position sizing given the longer timescale. Aim for a balanced risk-reward approach, partial profit around TP1, and trailing stop for the remainder.
Summary of the Dual-Scenario Approach
• Primary Setups in each category lean bullish, reflecting the broader uptrend and stable support around 38k–39k.
• Alternate (Contrary) Setups engage only if key supports break or resistance strongly rejects price, confirming a structural shift.
This dual approach covers both sides of the market, ensuring readiness for continued consolidation/breakout to the upside or a sudden downside invalidation of the current range.
NIKKEI SWING SET UPS
## SWING-TRADING (MULTI-WEEK) NIKKEI SETUP
### Overall Context
- **Market Sentiment & Positioning**: Institutional flows remain cautiously optimistic, with elevated hedging but steady inflows into key equity segments. The broader late-cycle expansion continues, while inflation shows signs of moderating.
- **Monetary Policy & Macro Factors**: Central banks globally are shifting toward accommodative policies, generally supporting equities. However, pockets of economic slowdown or negative surprises in data releases can quickly alter sentiment.
- **Technical Structure**: On the daily timeframe, the Nikkei has been building a bullish structure near the 38k zone, suggesting that dips into this area are often bought. Price attempts to push toward the 40k–41k region align with prior swing highs, forming a natural upside target for swing traders.
---
### A. PRIMARY (BULLISH) SWING SETUP
1. **Rationale**
- Seeks to capitalize on the Nikkei’s ongoing daily uptrend, with price consolidating above 38k.
- The daily momentum indicators and supportive macro environment suggest that further upside is possible if the index breaks its near-term resistance.
2. **Execution Parameters**
- **Entry Trigger**:
- Look for a daily close above ~39,500 on strong volume, indicating a renewed push toward the 40k region.
- A bullish crossover in technical indicators (e.g., MACD, RSI above ~55) can provide additional confirmation.
- **Stop-Loss Placement**:
- Below ~38,500 on a daily closing basis, allowing room for typical market volatility while protecting against a deeper breakdown.
- **Take-Profit Levels**:
1. **First Target**: Approximately 40,000–40,200, a significant daily resistance zone and psychological round number.
2. **Second Target**: Around 41,000, aligning with higher-end resistance if bullish momentum persists.
- **Risk Management**:
- Maintain a 1–2% account risk per trade. Position sizing should factor in the distance to your stop.
- Upon reaching the first target, consider partial profit-taking and moving the stop-loss to break-even.
3. **Supporting Factors**
- **Institutional Flows**: Large funds often continue buying dips in a stable macro environment, providing a cushion under prices.
- **Liquidity & Rates**: The supportive, lower-rate backdrop can encourage investors to hold equities longer, favoring sustained uptrends.
---
### B. ALTERNATE (BEARISH) SWING SETUP
1. **Rationale**
- Becomes actionable if the daily close undercuts ~38,000, suggesting the potential for a more pronounced corrective phase.
- Negative macro catalysts or a notable shift in risk sentiment could accelerate selling and undermine the current range-bound bullish bias.
2. **Execution Parameters**
- **Entry Trigger**:
- A daily close below ~38,000, followed by a second day of downside confirmation or inability to regain that level.
- **Stop-Loss Placement**:
- Above ~38,800 on a daily closing basis, invalidating the bearish scenario if price reclaims the broken support.
- **Take-Profit Levels**:
1. **First Target**: Near 37,000, which historically has acted as a pivot/demand area on the daily chart.
2. **Second Target**: Around 36,000, if downside momentum accelerates.
- **Risk Management**:
- Maintain a 1–2% risk allocation.
- Consider partial profit at the first target and tighten stops if the market heads lower in a sustained fashion.
3. **Supporting Factors**
- **Macro & Policy Shifts**: A sudden spike in inflation, unexpected central bank hawkishness, or severe economic data misses can quickly unwind bullish positions.
- **Institutional Hedging Unwind**: If selling pressure builds, existing hedges may intensify the move lower as positions are adjusted or closed out.
---
## KEY RISK MANAGEMENT NOTES
- **Data & Catalysts**: Swing traders should be mindful of earnings seasons, central bank announcements, and major geopolitical developments that can cause multi-day moves or gaps.
- **Trend Confirmation & Timely Exits**: Use daily closes (as opposed to intraday fluctuations) to confirm breakouts or breakdowns. Partial profit-taking at predefined levels and trailing stops on the remaining position help lock in gains while allowing participation in extended runs.
- **Sizing & Leverage**: With multi-day to multi-week holding periods, ensure that margin usage and stop placements accommodate overnight and weekend risk.
---
### CONCLUSION
For swing traders in the Nikkei, the **primary** approach aims to ride the prevailing daily uptrend toward the 40k–41k region, while the **alternate** scenario provides a structured plan if price breaks below ~38,000, indicating a deeper pullback. By integrating broader institutional positioning and macroeconomic indicators into a technical framework, traders can position themselves for potential multi-week opportunities while maintaining a disciplined risk posture.
NIKKEI SHORT TERM SET UPS SHORT-TERM (INTRADAY TO MULTI-DAY) NIKKEI SETUP
Overall Context
Institutional & Derivatives Backdrop: The broader market environment remains cautiously bullish, supported by stable liquidity and a net long gamma bias among dealers. This typically helps dampen extreme volatility and allows for orderly trend development.
Macro Influences: The global economy sits in a late-cycle expansion phase, with moderating growth but still supportive monetary policies. Headline inflation is easing from prior peaks, and major central banks are leaning toward rate cuts, collectively creating a generally favorable backdrop for equities.
Technical Structure: On lower timeframes, the Nikkei has established a significant support zone around 38,900–39,000. This zone has consistently attracted buyers, indicating that the short-term bullish case remains intact unless price decisively breaks below it.
A. PRIMARY (BULLISH) SHORT-TERM SETUP
Rationale
Capitalizes on the bullish consolidation above 38,900–39,000, where price tends to bounce and maintain its uptrend on 1H/4H charts.
With institutional flows still leaning risk-on, a break back above local resistance could trigger fresh buying interest.
Execution Parameters
Entry Trigger:
Wait for a 1H candle close above approximately 39,300 (the local lower-high pivot).
Look for a confirming signal such as a bullish engulfing bar on the 1H chart or an uptick in volume to validate momentum.
Stop-Loss Placement:
Beneath 39,000, just below the short-term bullish order block and the primary intraday support zone.
Take-Profit Levels:
First Target: Around 39,500, a nearby overhead supply area where price has previously reacted.
Second Target: Around 39,700–39,800, aligning with recent swing highs.
Risk Management:
Keep risk per trade to about 1–2% of total trading capital.
Once price reaches the first target, consider partial profit-taking and moving the stop to break-even to protect gains.
Supporting Factors
A generally bullish sentiment across major equity indices, fueled by easing global monetary conditions and stable liquidity.
The presence of robust institutional accumulation zones that tend to absorb selling around key supports.
B. ALTERNATE (BEARISH) SHORT-TERM SETUP
Rationale
Activated if the short-term support at 38,900–39,000 fails to hold.
A decisive break below this level may signal that short-term momentum is shifting negative, possibly driven by unexpected macro data or profit-taking.
Execution Parameters
Entry Trigger:
A clear 1H close below 38,900, confirming breakdown of the bullish order block.
Any retest that fails to reclaim 39,000 further strengthens the short setup.
Stop-Loss Placement:
Above 39,100, allowing some buffer for a potential false breakdown.
Take-Profit Levels:
First Target: Around 38,600, a minor support that could provide a short-term bounce or partial profit zone.
Second Target: Approximately 38,200 if selling pressure accelerates and the market continues to slide.
Risk Management:
Maintain a 1–2% risk limit.
Consider partial profit-taking at the first target and use a trailing stop on any remaining position in case of further downside.
Supporting Factors
Institutional hedging through puts or a sudden shift in risk appetite can amplify downside moves once a key support is lost.
Macro catalysts (e.g., negative economic surprises, renewed geopolitical tensions) could quickly erode bullish sentiment.
KEY RISK & TRADE MANAGEMENT CONSIDERATIONS
Event Catalysts: Keep track of economic releases and central bank announcements, as unexpected news can drive significant intraday volatility.
Liquidity & Volatility: Even though overall liquidity is robust, short-term spikes in volatility can create price gaps. Adjust position size and stops accordingly.
Partial Exits & Trailing Stops: Reduce risk once initial targets are hit. Securing gains while leaving room for extended moves can be an effective way to balance profit potential and capital preservation.
CONCLUSION
For short-term traders focusing on the Nikkei, the primary strategy leverages ongoing bullish momentum off the 38,900–39,000 support zone. The alternate strategy provides a clear roadmap should price break below this critical level, indicating a short-term trend reversal or corrective move. By integrating disciplined entries, well-placed stops, and prudent risk management, traders can navigate intraday to multi-day swings in the Nikkei efficiently.
Nikkei 225 (J225) Bearish Reversal | 1W TimeframeJ225 (Nikkei 225) is showing multiple rejections near the 40,741 resistance level, indicating a possible downtrend formation. The price is currently testing the 38,333 support, and a breakdown here could lead to a significant bearish move.
🔹 Resistance: 40,741 (Rejection Zone)
🔹 Bearish Confirmation: Break below 38,333
🔹 Key Targets: 36,702 → 35,306 → 33,828 → 30,401
If this setup plays out, a lower high, lower low structure could be in motion, pushing J225 lower in the coming weeks. However, this is not financial advice—just an educational market analysis. Manage risk and always do your own research before making any trades! 🚨
Long on Nikkei 225For now, I am long on Nikkei 225. We have a bottom, currently looking for a retest of broken support and a higher low. Once confirmed this is an easy long to the golden zone between 0.5 and 0.618 Fibonacci retracement levels.
Target 1 - 39,400
Target 2 - 40,300
For mid term I will be looking for a significant pullback from the nikkei 225. However, there is still potential for bullish price action in the short term.
Nikkei 225 index Wave Analysis – 12 February 2025
- Nikkei 225 index reversed support level 38000.00
- Likely to rise to resistance level 40285.00
Nikkei 225 index recently reversed up from the support level 38000.00, which is the lower border of the narrow sideways price range inside which the index has been moving from last October. This support area was strengthened by the lower daily Bollinger Band
The upward reversal from this support area created the daily Japanese candlesticks reversal pattern Piercing Line.
Given the clear daily uptrend, Nikkei 225 index can be expected to rise to the next resistance level 40285.00 (the upper border of this price range).
J225 JAPANThe Nikkei 225, also known as the Nikkei Stock Average, is a stock market index for the Tokyo Stock Exchange (TSE). It is a price-weighted index comprised of 225 highly capitalized and liquid publicly owned companies in Japan from a wide array of industry sectors. The index is a key indicator of the Japanese stock market and the performance of the Japanese economy.
The index includes companies from various sectors such as technology, automotive, finance, retail, and healthcare. This broad representation ensures that fluctuations in the index reflect the overall performance of Japan's economy.
Automotive Powerhouse and Renowned automobile manufacturers such as Toyota Motor Corporation and Honda Motor Co., Ltd., are prominently featured in the Nikkei 225 Index.
Financial Institutions like Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc., and Mizuho Financial Group Inc., form an integral part of the Nikkei 225 Index.
Global Giants and as well multinational corporations with a significant global presence are included in the Nikkei 225.
The Nikkei 225 is a price-weighted index, meaning that each component's weight is determined by its stock price rather than its market capitalization. However, companies with larger market capitalizations tend to have a greater influence on the overall index movement.
Review of Components of the index are done annually by the Nihon Keizai Shimbun (Nikkei) to keep correct status of each member.
NIKKEI to see a capped rally?JP225USD - 24h expiry
Buying pressure from 38377 resulted in prices rejecting the dip.
The current move higher is expected to continue.
With the Ichimoku cloud resistance above we expect gains to be limited.
We therefore, prefer to fade into the rally with a tight stop in anticipation of a move back lower.
Further downside is expected although we prefer to sell into rallies close to the 39400 level.
We look to Sell at 39400 (stop at 39732)
Our profit targets will be 38452 and 37705
Resistance: 39660 / 40720 / 42155
Support: 37705 / 36330 / 34955
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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Is there life in the old dog yet? Thoughts on Japan...Japan, once known for its high standard of living and expensive prices, has seen a dramatic shift. Today, Japan is often praised by travellers for its affordability, with the Yen weakened by decades of financial repression. While Japan's industrial and infrastructure standards remain high, its citizens are becoming poorer. The average monthly income has fallen sharply from $4,000 in 2012 to just $2,240, putting it on a par with countries such as Spain.
Japan's current economic policies, particularly its refusal to raise interest rates despite inflation remaining above the 2% target for over 31 months, are worrying enough. The Bank of Japan's reluctance to adjust interest rates due to Japan's high level of government debt has kept the key interest rate at just 0.25%. As a result, Japanese savers have turned to foreign currency investments, further weakening the Yen.
Currency depreciation has never led to greater competitiveness or long-term prosperity, and countries such as Argentina and Italy are examples of where such policies have failed to deliver the desired results. In contrast, countries such as Singapore, Norway and Switzerland remain at the top of global income rankings. We could also draw parallels with Germany's own departure from the "hard currency" club, as it and the wider Eurozone follow Japan's economic model.
Questions on my mind:
- Given Japan's current economic environment, how do we view on the long-term stability of the Yen?
- With Japanese wages stagnating, do we see opportunities in Japanese equities or sectors that could benefit from a weaker currency?
- How might Japan's refusal to raise interest rates affect foreign investment in the country over the next few years?
- Do you think the trend of low interest rates and currency depreciation will continue in the Eurozone and how might that affect global markets?
- In a scenario where Japan continues on this economic path, what other regions or emerging markets might offer better investment opportunities in comparison?
Nikkei225Nikkei225 is in a correction phase. The price has a chance to test the support zone of 37528-37039. If the price can still stand above 37039, it is expected that the price will have a chance to rebound.
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