Intraday Preference: BULLISH
Reference Area: 16858-16752
A weaker yen helped the Nikkei to move in positive territory today, the yen and the Nikkei are likely to have a negative correlation. A weaker yen helps Japanese exporters increase profits by increasing the competitiveness of their products.
The dominance of the dollar against the yen last week continued today, expectations of interest rate hikes in the US next month is a major factor that pushed the dollar higher.
Technical Analysis:
20 MA has crossed above 50 MA on hourly chart. Nikkei is in bullish bias in short-term view, with target at 17030. Hourly stochastic and CCI are oversold in general, with CCI is rising. As alternative strategy, watch for bullish signal confirmation on a pull-back move to the reference area at 16858-16752 with target at 16924-17030.
Free Reports:
Be careful if the support at 16752 breaks, because it possibly will turn the intraday bias to bearish and potentially will be followed by a bearish move to 16676-16580.
By Andrew Bulan, analyst for EconomicCalendar.com