nikkei 225 daily outlook tues 12 apr 2016 corrective rebound in progress potential final push up tow

(Click to enlarge chart)

What happened earlier/yesterday

In our last Friday’s short-term technical strategy/outlook, we have mentioned that the Japan 225 Index (proxy for the Nikkei 225 futures) is in the progress of undergoing a short-term minor rebound. In our latest weekly strategy/outlook strategy, we have kept this potential short-term rebound view on the Japan 225 Index and “tidied” up the levels. Please click here for more details.

Key elements

• The Japan 225 Index has remained resilient despite the weakness seen in the overnight U.S, session. This morning, it has managed to stage a rebound from U.S. session low of 15679 and broke above a minor trendline resistance that has linked up the lower highs since last Friday, 08 April 2016 high of 16032 now turns pull-back support at 15820.
• The Index has started to evolve within a short-term bullish ascending channel from 07 April 2016 low with its lower boundary (support) at 15730/670 and upper boundary (resistance) at 16240/300.
• The upper boundary of the ascending channel at 16240/300 also confluences with a Fibonacci cluster and graphical level (minor swing high) as per highlighted in our latest weekly strategy/outlook published yesterday.
• The USDJPY is still being supported by the minor support of 107.60.

Key levels (1 to 3 days)

Intermediate support: 15820

Pivot (key support): 15730/670

Resistances: 16240/300

Next support: 15330

Conclusion

Short-term technical elements remain positive. Any potential minor pull-back is likely to be held by the short-term intermediate support of 15820 with a maximum limit set at the 15730/670 daily short-term pivotal support for a potential final push up to target the minor corrective rebound target (resistance) at 16240/300 before another downleg materialises.

On the flipside, a break below the 15730/670 short-term pivotal support may invalidate the final push up scenario to see the start of another potential downleg towards the last Thursday, 07 April 2016 swing low area at 15330.

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