17 Jan 2014
Nikkei 225 futures - Bearish ouside day shifts focus to the downside
FXstreet.com (Bali) - The turn around in fortunes for the Nikkei 225 futures chart does not bode well for the prospects of Yen crosses today.
While a close above the tenkan/kijun lines on Wednesday acted as tentative signs of sustained strength in the index, the bearish outside day seen on Thursday is a reminder that focus is shifted to the downside short term, with losses potentially accelerating on a break of Thursday's low. The benchmark index lost the 2 key tenkan/kijun lines.
While the implications for the USD/JPY would be trading on a heavy tone, as the Nikkei is usually leading the Yen, it is worth noting that the USD/JPY is still holding above the 104.10 daily tenkan ahead of a potential kijun intersection just below 104.00. The down-tick in US Treasury yields (10 years) towards 2.84% limited gains for the USD/JPY.
While a close above the tenkan/kijun lines on Wednesday acted as tentative signs of sustained strength in the index, the bearish outside day seen on Thursday is a reminder that focus is shifted to the downside short term, with losses potentially accelerating on a break of Thursday's low. The benchmark index lost the 2 key tenkan/kijun lines.
While the implications for the USD/JPY would be trading on a heavy tone, as the Nikkei is usually leading the Yen, it is worth noting that the USD/JPY is still holding above the 104.10 daily tenkan ahead of a potential kijun intersection just below 104.00. The down-tick in US Treasury yields (10 years) towards 2.84% limited gains for the USD/JPY.