Nikkei – A Tug of War Between Bulls Vs. Bears - Forex News by FX Leaders

Nikkei – A Tug of War Between Bulls Vs. Bears

Posted Monday, March 20, 2017 by
Dave Green • 1 min read

Today, in the early Asian session, the global stock markets fell in the wake of economic events in the United States. Specifically, the industrial production and capacity utilization rate disappointed the market. The S&P 500 fell -0.19% to trade at $2370.75 along with the DJIA, which plunged -0.09% today.

Similarly, the Japanese stock market index Nikkei dropped to $19391. As we know, the Nikkei follows the footsteps of DJIA in deciding further trends. We may potentially see thin volatility in the Asian markets today as the Japanese banks are closed in observance of Vernal Equinox Day.

Nevertheless, during the G20 meeting on Friday,  the financial leaders of the world's largest economies reemphasized their predictions against competitive devaluations in the forex markets. In my opinion, the varied and unstable exchange ratescould pose a problem in international trade, and impose threats for global stock. Another bearish signal for global stocks.

A Bullish Setup In Nikkei - 4-Hours Chart

A Bullish Setup In Nikkei – 4-Hour Chart

However, the technical outlook is quite mixed today as the RSI (below 50) and candlesticks beneath 50 periods EMA are not supporting a bullish trend. At the same time, an ascending trendline in the 4-hours chart provides hope for buyers. It demonstrates support at $19400. For now, the index needs to break above a $14452 level to hit our take profit of $19520.

Nikkei Signal: I just opened a buying trade in the Nikkei, with a stop loss below $19385 and a take profit at $19520.

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