Japan 225 (JP225USD) In A Bearish Movement, Encounters A Massive Sell-off


Key Resistance Zones: 23200, 23600, 24000
Key Support Zones: 20800, 20400, 20000

Japan 225 (JP225USD) Long-term Trend: Bearish
Japan 225 index was in an uptrend since August 2019. The index rose from the low of 20000 to 24000 in February. The bulls are currently facing resistance at 24000. The bulls made concerted efforts to break the overhead resistance. However, after three unsuccessful attempts, a bearish triple top is formed.

JP225USD – Daily Chart

A bearish triple top is a reversal pattern responsible for the downward movement of the index. The price slumped to a low of 20728. Nonetheless, Japan 225 has fallen to the oversold region. Price is likely to hold above 20000 support. Meanwhile, the support is a historical price level where the price consolidated before an upward move.

Daily Chart Indicators Reading:
The downward movement of the index has resulted in the JP225USD to be in an oversold region. The market has fallen below a 20% range of the daily stochastic. This also means that Japan 225 is in a strong bearish momentum. However, when buyers emerge the index will be in bullish momentum.

Japan 225 (JP225USD) Medium-term Trend: Bearish
On the 4- hour chart, the index has been in a sideways move since November 2019 before the price breakdown. Before the breakdown, JP225USD has been fluctuating between 22880 and 24000. On February 19, the bulls made an upward move but the resistance causes the index to slump to the current support.

JP225USD – 4 Hour Chart

4-hour Chart Indicators Reading
The market is currently at level 21 of the Relative Strength Index period 14. The index is likely to fall as it is below the centerline 50. The 21-day SMA and the 50-day SMA are sloping horizontally. The bottom line is that buyers will emerge in the oversold region to push the coin upward.

General Outlook for Japan 225 (JP225USD)
Japan 225 has plunged into the bottom of the chart. Presently, the index is in the oversold region of the market. Buyers are expected at the oversold region to push the price upward. Nonetheless, the index can remain in the oversold region if buyers fail to emerge.

Instrument: Japan 225 (JP225USD)
Order: Buy Limit
Entry price: 20400
Stop: 20000
Target: 23200

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.