Is Momentum Changing for NIKKEI 225? Price Just Crossed Below Its 20 Day Moving Average

News Releases Impacting NIKKEI 225

  • Forecasted Core Inflation Rate YoY in Japan: 0.3%. The previous number: 0.5%. (40% difference between the two.)

The Hourly View for NIKKEI 225

  • At the time of this writing, NKY’s price is up 64.97 (0.24%) from the hour prior.
  • This move is a reversal from the hour prior, which saw price move down.
  • If you’re a trader with a preference for rangebound markets, you may wish to note that there isn’t a clear trend on the 20, 50 and 100 hour timeframes.
  • Regarding moving averages, it should first be noted that price has crossed the 50 hour moving average, resulting in them so that price is now turning above it. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

NIKKEI 225’s hourly price chart is shown below.


The Daily View for NIKKEI 225

  • At the moment, NKY’s price is up 595.21 (2.22%) from the day prior.
  • This is a reversal of the price action on the previous day, in which price moved down.
  • As for the trend on the daily timeframe, we see the clearest trend on the 50 day timeframe.
  • Most noteworthy in the world of moving averages on the daily chart is that the 20 day moving average has been crossed, with price now being above it. The moving averages on the daily timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.
  • Divergence between NKY’s price and its RSI may be manifesting. As such, be on the lookout for trend reversal in NKY’s price.

Below is a daily price chart of NIKKEI 225.