JPN225: low shock

Fundamental analysis:

The Nikkei 225 Index closed down 294.37 points, or 1.11%, at 26213.50 points on December 23 (Friday). Japan's core consumer inflation hit a 40-year high of 3.7 percent in November as companies continued to pass on rising costs to households, a sign that rising prices are spreading to the wider economy. Such an increase calls into question the BOJ's view that recent cost-push inflation will be temporary, and could keep markets betting that the central bank will further scale back its massive stimulus next year.

The Nikkei JPN225——4-hour K-line chart shows:

Brief technical analysis:

Looking at the 4-hour chart: low volatility within a narrow range, the downward momentum of market bears has weakened, bulls are waiting for an opportunity to enter the market, the MACD indicator is in the bearish zone and moves upward slowly, and the RSI indicator is in the bearish zone and fluctuates upward;

Long-short turning point: 26154

Suppression: 26329, 26466

Support: 26001, 25876

Trading strategy: Bullish above 26154, target 26329, 26466

Alternative strategy: bearish below 26154, target 26001, 25876