Capitalcore
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Daily JAP225 H4 Chart Analysis Before CPI Release
The JAP225, also known as the Nikkei 225 Index, is a leading benchmark for the Japanese equity market, often dubbed the "Nikkei." It tracks the performance of 225 top-rated companies listed on the Tokyo Stock Exchange, reflecting investor sentiment around the Japanese economy. As traders gear up for today's economic data, all eyes are on Japan's Consumer Price Index (CPI) excluding fresh food, a key inflation gauge. The upcoming release holds weight, as stronger-than-expected figures could strengthen the JPY, potentially creating downward pressure on the Nikkei due to increased speculation around future monetary tightening by the Bank of Japan. Investors should closely monitor this data as it may influence capital flows and short-term movements in JAP225 price action, especially if the actual CPI surpasses forecasts.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Analyzing the JAP225 (Nikkei 225) H4 chart, the price appears to be making a bullish correction following a strong bearish trend, forming a rising channel. The chart shows the price action shifting from the lower half of the Bollinger Bands to the upper half, currently trading between the 0.382 Fibonacci retracement level (34,264) and the middle Bollinger Band, which is aligning closely with the 0.382 level — acting as a key pivot zone. Bollinger Bands are tightening, indicating a potential breakout in momentum. The MACD histogram is turning green with a narrowing signal line, suggesting the possibility of a bullish crossover. Additionally, the Williams %R is climbing toward the midpoint, moving out of oversold territory, further supporting short-term bullish sentiment. However, caution is warranted as price is still testing resistance levels, and the reaction to CPI news could determine the next leg in this recovery trend.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
Capitalcore
The JAP225, also known as the Nikkei 225 Index, is a leading benchmark for the Japanese equity market, often dubbed the "Nikkei." It tracks the performance of 225 top-rated companies listed on the Tokyo Stock Exchange, reflecting investor sentiment around the Japanese economy. As traders gear up for today's economic data, all eyes are on Japan's Consumer Price Index (CPI) excluding fresh food, a key inflation gauge. The upcoming release holds weight, as stronger-than-expected figures could strengthen the JPY, potentially creating downward pressure on the Nikkei due to increased speculation around future monetary tightening by the Bank of Japan. Investors should closely monitor this data as it may influence capital flows and short-term movements in JAP225 price action, especially if the actual CPI surpasses forecasts.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Analyzing the JAP225 (Nikkei 225) H4 chart, the price appears to be making a bullish correction following a strong bearish trend, forming a rising channel. The chart shows the price action shifting from the lower half of the Bollinger Bands to the upper half, currently trading between the 0.382 Fibonacci retracement level (34,264) and the middle Bollinger Band, which is aligning closely with the 0.382 level — acting as a key pivot zone. Bollinger Bands are tightening, indicating a potential breakout in momentum. The MACD histogram is turning green with a narrowing signal line, suggesting the possibility of a bullish crossover. Additionally, the Williams %R is climbing toward the midpoint, moving out of oversold territory, further supporting short-term bullish sentiment. However, caution is warranted as price is still testing resistance levels, and the reaction to CPI news could determine the next leg in this recovery trend.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
Capitalcore
