Bullish momentum drags Japan down

6月11日

Indices outside Europe traded higher yesterday and the right-wing-weighted European elections pushed Macron in France to call for early national elections. Meanwhile, the euro fell to a record low and European equities suffered from the result. In contrast, the rest of the international indices started their sessions in positive territory, although not all of them ended in the same way. In the case of the US market, the Dow Jones rose +0.18%, the S&P500 +0.26% and the Nasdaq +0.35%. NIKKEI 225(Ticker AT: JP225) closed down on Monday at 39,096 points, today, with the European political inertia, the market opened at 39,168.50 closing at 39,128.50 points. The index has grown by 21.42% this year.

This week, the US monetary policy news added to the Bank of Japan (BoJ) report may strongly affect the index in two days. The weakness of the Japanese yen against the dollar may mark the Japanese basket higher and the governor may try to restrain the currency again. The general sentiment on the index is Strong Buy for investors.

Looking at the chart, the RSI is currently at 57.01% in the middle zone. The price bell that has been forming on the daily chart on the NIKKEI 225 is a triple bell with the upper bell at a high trading level, with the control point (POC) at 38,653 points. If we look at the inertial movement of the chart, there has been a bounce in the correction at 36,650 points zone and currently the price is trying to look for a return to the most traded zone at 39,942 points. If this first price resistance is overcome and the index delivers strong corporate results, we will begin to see the one-day timeframe for the highs target to be reached. At the moment the index, like many other indices is at all-time highs. So it remains to be seen how long this euphoric time lasts in a market with really high inflation.

Ion Jauregui - ActivTrades Analyst




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