Japan’s overnight data release has made investors worry over the country’s 2019 economic outlook.
Nikkei 225 – Technical Outlook
The Nikkei 225 has ended the year below the opening price but managed to remain above the psychological 20000 barrier. Looking at our Nikkei 225 cash index daily chart, it has now dropped back below the 20000 mark. Our oscillators suggest that the index is quite oversold and could be ready for a bit of more correction to the upside. Overall, Nikkei 225 is on a downslope, trading below a short-term downside resistance line taken from the peak of the 1st of October. For now, we will stay put, but keep an eye on one of our key breakout levels.
If Nikkei 225 cash index moves up and breaks this week’s high near the 20200 barrier, this could be seen as a good sign for the bulls to step in and drive the index higher, towards the next potential area of resistance at 20795, marked by the low of the 29th of October. A break of that area may open the door to the 20980 zone, or even higher, to test the aforementioned downside resistance line.
Alternatively, a drop below the 19515 hurdle, marked by yesterday’s low, might invite a few more bears, so they could push the price a bit lower. This is when we will aim for the 19140 obstacle again, a break of which could force the index to re-test the December lows at around 18928, which if doesn’t stop the fall, a further decline may lead Nikkei 225 towards the 18660 support zone, marked by the high of the 21st of April 2017.
NZD/JPY – technical Outlook
After moving sharply lower the previous week, NZD/JPY has been trading sideways this week, between the 74.05 and the 74.95 levels. Because the downside momentum had eased off a bit, we will shift our views of the short-term outlook to a more...
Final link from Tuesday to Friday:
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