Well, Nikkei 225
is super resillient even with the Korean peninsula tension. The market still up and alive; also, BOJ recent monetary decision and Abe's snap election actually pushed Nikkei up for a potential upside. To be honest, Japan is still not under a favorable condition for investment, but speculation perhaps an opposite. Japan's economic data are improving even it has yet reached its expected target inflation
and export is under pressure from the currency, but economic data are really improving in a better way. Another way to keep track of Nikkei would be to look at USDJPY
pair because they kind of have positive correlation as long as the appreciation still continue this way there's a very good chance Nikkei will continue to go up. Anyway, looking at a graph is always the best way to confirm the idea.
In a day time frame, Nikkei is kind of retreating after its hot movement in the past few weeks. FT
is also suggesting so because there was already a dead-cross and soon it could go below the uptrend line so longing at this point is not a wise move, but yet there's big upside for in the week time frame. Volatility
is also very high in Nikkei so it's better to be patient.
In the week time frame, huge upside because there was a recent double bottom
plus a golden cross in the FT
. The target would be the previous high of the FT
which is quite far away relative from this point. So, if the market is calm and low vol in the next few weeks; we could see continuos upside move in Nikkei.