nikkei 225 potential short term corrective rebound in progress 2691042017

Short-term Technical Outlook (Tues, 18 Apr 2017) (Click to enlarge chart) What happened earlier/yesterday The Japan 225 Index (proxy for the Nikkei 225 futures) had […]

Blue avatar for guest contributors
By :  ,  Financial Analyst

Short-term Technical Outlook (Tues, 18 Apr 2017)

Japan Index (1 hour)_18 Apr 2017(Click to enlarge chart)

What happened earlier/yesterday

The Japan 225 Index (proxy for the Nikkei 225 futures) had staged the expected corrective rebound right above 18200 reinforced by a similar rebound seen on the USD/JPY at the 108.40/108.00 medium-term support as highlighted earlier after the “final drop”. Please click here for a recap on our latest weekly technical outlook report published earlier yesterday, 17 April.

Key technical elements

  • The key short-term support now rests at 18295 which is defined by the minor swing low area of 17 April 2017 and the 76.4% Fibonacci retracement of the first leg of the corrective rebound in place since yesterday low to today (18 Apr) Asian session current intraday high of 18545.
  • The significant short-term resistance stands at the 18580/640 zone which is defined the upper boundary of the minor descending channel in place since 29 March 2017 high and former range support from 17 January/06 April 2017
  • The short-term hourly Stochastic oscillator is now coming close to an extreme oversold level where another round of potential short-term upside movement may materialises at this juncture.

Key levels (1 to 3 days)

Pivot (key support): 18295

Resistance: 18580/640

Next support: 18060


As long as the 18295 short-term pivotal support holds, the Index may see another round of corrective rebound to target the 18580/640 resistance.

However, a violation of the 18295 level is likely to invalidate the preferred corrective rebound to see the continuation of the medium-term downside movement to target the next support at 18060 in the first step.

Charts are from City Index Advantage TraderPro & eSignal


The material provided herein is general in nature and does not take into account your objectives, financial situation or needs. While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments. City Index recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets. It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. GAIN Capital Australia Pty Ltd (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.

Related tags:

Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar