Second Finlogix analysis today goes to the Nikkei225 or JP225 index.

Previous trade plan has ended in another loss after holding for 4 days and 15 hours:

https://www.finlogix.com/analysis/20240313/nikkei225-intraday-analysis-and-trading-plan-for-march-13-2024

4 straight losses already but let’s continue.

There are 4 Japanese economic reports due this week and the heaviest was out hours ago, the BOJ Policy Rate has finally ended its negative rates since 2016. Yen rates jumped from -0.10% to 0.10% after the statement came out.

R-assessing Nikkei225’s high timeframe candles:

Yearly Candle: Still a Green Body since last check

Monthly Candle: Last check is a Red Long Upper Shadow now a Green Spinning Top

Weekly Candle: Previous close is a Red Body with a longer Head Wick current is developing a Red Spinning Top

Daily Candle: Previous close is a Green Body current is developing a Red Body

Pretty 3 solid trading days scoring in gains for the index.

With the BoJ finally intervened to end the negative rates seen since 2016, the Nikkei225 has continued its bullish traction after holding last week’s 38300 support levels.

The news finally convinced me to stop shorting Nikkei225!

There is a new bullish daily FVG for the record and I like to enter a long position through the current market price.

I’m fomoing yes. I’ve waited for the news to came out and it’s enough story.

There’s short squeezing in the last 3 days as well.

Who will sell the index with a positive major news like that?

This is my basis for a breakout trade with a take profit target above the index’s previous ATH.

In case I am wrong, a stop loss is placed a little above the intraday’s swing low that might turn the current daily candle red nullifying the new bullish daily FVG.

There are a lot of willing buyers right now and I like to join the current up wave and my previous bearish engulfing call was held strongly to the upside.

Nikkei225 Intraday Analysis and Trading Plan For March 19, 2024

Mar 19 2024

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