JPN225: Narrow shock

The Nikkei 225 Index closed up 183.65 points, or 0.71%, at 26157.50 points on January 10 (Tuesday). Inflation in Tokyo hit 4% for the first time since 1982, with the acceleration in prices showing signs of dampening household spending, data from Japan's Interior Ministry showed. Prices in Tokyo have exceeded the Bank of Japan's 2 percent target for seven months in a row, but that may not convince Bank of Japan Governor Haruhiko Kuroda that the trend will continue. The Bank of Japan expects prices to fall below 2 percent next fiscal year.

Brief technical analysis:

Looking at the 4-hour chart: In the short term, the trend is maintained within a narrow range, and the bullish sentiment in the market shows signs of waiting for an opportunity to enter the market. The MACD indicator is in the bullish zone, and the RSI indicator is hovering weakly on the side of the 50 balance line;

Long and short turning point: 26177

Compression: 26350, 26453

Support: 26068, 25963

Trading strategy: Bullish above 26177, target 26350, 26453

Alternative strategy: bearish below 26177, target 26068, 25963