A Quick Technical Setup and Trade Idea for Nikkei

What’s up, everyone.

The global stock markets are gaining momentum before the non-farm payroll tomorrow. Taking a look at the Japanese and German stock market indices, both are offering nice setups to trade.

Nikkei – Weaker Yen Keeping It Bullish

Fellas, there’s a negative correlation exists between Japanese Yen and the Japanese stock index. Therefore, the weakness in Yen causes the bullish trend in NKY.

Nikkei – Daily Chart

That being said, we need to closely monitor the Nikkei to catch further bullish waves. Lookin at the hourly chart below, Nikkei is testing a resistance level of $23,485. That the same level where Nikkei was having support in the last week.

The break above $23,485 can lead the market up to $23,650 and even to $23,700. Whereas, the index can dip to $23,390 on its failure to break $23,485. See the key trading levels for Nikkei.

Support     Resistance

23579.34    23989.66

23452.6      24116.4

23247.44    24321.56

Key Trading Level:    23784.5