Tuesday’s trading session marked a historic feat for the Japanese stock index. Just 8 months after the index hit the 50,000 landmark, it has now also cleared ¥70,000. Part of that repricing has been historic Yen weakness, as the currency lost 6.5% of its worth over the same time period. But another part has been a genuine stock rally, mimicking and sometimes beating returns of its American counterpart.
Nikkei 225 on the Daily Timeframe
For now, the trend remains staunchly up. And with the BoJ rate hike out of the way, as well as the US–Iran conflict seemingly coming to an end, making a continuation of this bull run the base case. For some support, look for the prior All-Time High at ¥68,780, and a bit lower down for the high of the day prior to the bullish engulfing (a key technical inflection point) at $65,085.
Trying to plot upside levels is an educated guess at best, as there’s simply no structure to lean on. If you want to open a higher-timeframe short, be aware you are fighting the trend, and will need a convincing case to pull off holding a short position for longer than a few hours.