JPN225: Narrow shock

Fundamental analysis:

On December 30 (Friday), the Nikkei 225 Index closed down 10.17 points, or 0.04%, to 26083.50 points. With Kishida appearing to be reversing Abe's reflationary economic policies, speculation has grown over Yamaguchi's potential. If appointed as governor, the other two candidates, Masaka Amamiya and Hiroshi Nakaso, are not expected to make any major changes to current monetary policy. The Bank of Japan conducted unscheduled bond purchases for a third day in a row, countering speculation that an end to its ultra-loose monetary policy is imminent.

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

Brief technical analysis:

Looking at the 4-hour chart: the low volatility is within a narrow range, the volatility space is narrowed, the market’s bearish sentiment remains, the MACD indicator is in the bearish area, and the RSI indicator is hovering weakly below the 50 balance line;

Long and short turning point: 25815

Press: 25970, 26119

Support: 25605, 25417

Trading strategy: bearish below 25815, target 25605, 25417

Alternative strategy: call above 25815, target 25970, 26119