Nikkei to 20000? US Jobs Will Tell The Story
Rowan Crosby • 1 min read
Just when is appeared the Nikkei was about to tip over the edge and crash below its 200 SMA, in swept a wave of buying and there’s been a sea green the entire way up.
This has gone hand in hand with the US markets who have jumped and run all the way back after selling off sharply last week. Tensions with North Korea and negative sentiment on the state of the US economy haven’t helped matters and were the drivers for the sell off.
NFP will dictate the Nikkei’s fate
If we can get a beat on tonight's NFP number then I think we are going to rally all the way back above 20000. There has been a pretty important range that has been established that has contained the bulk of the volume in recent times.
The area from 19800-20100 is a region that price will be drawn towards. As it stands we are about 100 points lower and in need of a spark. NFP might just give us that.
There have been suggestions that the August number regularly disappoints so keep that in mind. However if the official number can follow the ADP result, then I expect us to pull back into the trading range I mentioned and hit 20000 by next week.