Japan 225 (JP225USD) Reaches Bearish Exhaustion, May Reach Level 22821 and Reverse

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

Japan 225 (JP225USD) Long-term Trend: Bearish
Japan 225 is fluctuating in a sideways move below level 23750. On October 28, Japan 225 fell to the low at level 23066 and resumed consolidation above the current support. A retraced candle body tested the 78.6% Fibonacci retracement level. This indicates that the index will fall and reverse at level 1.272 Fibonacci extensions.

Daily Chart Indicators Reading:
Japan 225 is at level 39 of the Relative Strength Index. It indicates that the market is in the downtrend zone and below the centerline 50. The 21-day SMA and 50-day SMA are sloping upward indicating the previous trend.

Japan 225 (JP225USD) Medium-term Trend: Bearish
On the 4- hour chart, the market is in an upward move. On October 30 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The index is likely to fall and reverse at level 1.272 Fibonacci extensions. That is at level 22821.40.

4-hour Chart Indicators Reading
The 21-day SMA and the 50-day SMA are sloping downward indicating the bearish trend. JP225USD is above the 30% range of the daily stochastic. It implies that the market is in a bullish momentum.


General Outlook for Japan 225 (JP225USD)
Japan’s 225 index is in a downward move. The current downtrend has been exhausted. A retraced candle body has tested the 78.6 Fibonacci retracement level. At this retracement, the market will fall to level 1.272 and reverse. However, the reversal will not be immediate.


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