Nikkei testing major support

06. January 2016 · Write a comment · Categories: EDGE Chart of the Day · Tags: , ,

We have been watching the Nikkei closely, as it is approaching a long term uptrend line dating back from 2012:

1-6-16Nikkei

As many of you know, the JPY has been extremely strong all week. Many traders (such as myself) have been waiting for a pullback to get long some JPY (i.e. short EUR/JPY, AUD/JPY etc.):

1-6-166J

If you take a look closer to the Nikkei, and compare to the 6J (JPY contract) you can see the very strong correlation:

1-6-166JNKD

If the Nikkei sustains a break down, the JPY may not pullback any time in the near future.

 

Blake Morrow

Chief Currency Strategist, Wizetrade

0
Shares

Nikkei and JPY are not “Jiving”

12. March 2015 · Write a comment · Categories: EDGE Chart of the Day · Tags: , ,

When the Nikkei hits highs, typiclly the JPY will hit lows. What you will notice below is the Nikkei futures (yellow line) is breaking out higher, but the 6J JPY futures (candlestick chart) is developing a double bottom. I suspect one is going to give was soon.

3-12-156JNKD

The Nikkei is pushing the 161%v extension, RSI on the daily chart is divergent. With currencies like the EUR/JPY are looking very bearish on the weekly charts, there is quite a battle going on at the moment.

3-12-15NKD

 

Blake Morrow

Chief Currency Strategist, Wizetrade

 

Disclaimer: I am long some JPY in hopes that the Nikkei turns from this key resistance.

0
Shares