20 Jan 2014
Nikkei 225 futures: Needs to regain 16,000 for Yen crosses to firm up
FXstreet.com (Bali) - The Nikkei 225 futures chart presents a mixed picture for Monday, with price still hovering directionless around its daily kijun/tenkan lines, both turned flat for the last 3 days.
While on a more long term outlook, risk was shifted for the initiation of a 3rd wave on the weekly chart, with final target at 123 minimum, key monthly fibonacci retracements have kept above 16,000 now, leading to some short term pressures, as bears continue making lower lows.
It should also be added that the selling vs recovery velocity is in favour of the bears this year, as most of the impulsive swings came as a result of selling activity instead of buying, hinting at stronger conviction by the sale side. As the technical picture stands, unless the 16,000 handle is re-taken on an hourly basis/ideally daily, Yen crosses may find it hard to pick up much momentum/follow through during Asian hours.
While on a more long term outlook, risk was shifted for the initiation of a 3rd wave on the weekly chart, with final target at 123 minimum, key monthly fibonacci retracements have kept above 16,000 now, leading to some short term pressures, as bears continue making lower lows.
It should also be added that the selling vs recovery velocity is in favour of the bears this year, as most of the impulsive swings came as a result of selling activity instead of buying, hinting at stronger conviction by the sale side. As the technical picture stands, unless the 16,000 handle is re-taken on an hourly basis/ideally daily, Yen crosses may find it hard to pick up much momentum/follow through during Asian hours.