The japanese index (JAP225) fell nearly 1.40%, following Wall Street's decline. Investors are also concerned about the Bank of Japan's absence of ETF purchases in Tuesday's session, during which the Nikkei experienced its biggest drop since February 26.
Another factor that hurt the market was SoftBank, which fell 2.76% after a news report that the group is expected to announce a record annual net loss after the close
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appIn this analysis on NIKKEI (JAP225), we will focus on three intervals - weekly, daily and H4 - to find out the perspectives for the japanese index.
Weekly interval :
When we look at the weekly time frame, we can see that the NIKKEI (JAP225) has been under pressure in recent months. During this week, NIKKEI was impacted by techs sell-off which caused prices to fall near the Kijun-line (blue line). Closing under this line may announce a deeper decline.
NIKKEI (JAP225), W1 interval, Source : xStation5
Daily interval :
NIKKEI (JAP225) plunged yesterday as tech shares sold off, leading the japanese indexe to break under the lower limit of the triangle. The downward move resumed today and the Chikou-span broke the lower limit of the Ichimoku cloud (red box), confirming the bearish signal. If bears manage to break 27 550 pts support, the next support can be found at 26 640 pts.
NIKKEI (JAP225), D1 interval, Source : xStation5
H4 interval :
After breaking through the cloud (major Ichimoku bearish signal), prices collapsed to significant support marked by previous price reactions. If the hourly candlestick manages to close below this support (green area), the decline could deepen. Next support can be spotted on the daily chart at 27 550 pts. In the other hand, if prices rise, the next resistance can be found at 28 780 pts (blue area) wich coincide with the Kijun-line (blue line).
NIKKEI (JAP225), H4 interval, Source : xStation5
Réda Aboutika, XTB France
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
