NIKK Nikkei Daily Chart Sideways Symmetrical Triangle

The Nikkei coughs up -4% overnight as the yen strengthened (dollar/yen dropped through 97). The Nikkei closed is at 13825 (brown dot) which is at the lower trend line and the 50-day MA at 13805, obviously a key level. If Japan loses hold of this 13800-ish area there is another chunk of downside ahead. The indicators are lining out sideways. The black ADX line is low also verifying that there is no strong trend; the index is meandering sideways. Price is also bracketed by the 20 and 50 MA's so these are important resistance and support levels that directly correspond to the triangle trend lines. Price has to make an up or down decision in the days ahead and the ramifications are huge. The vertical side of the triangle is about 3200 points so if the bulls break to the upside at 14400, that lights the way to a 17600 top. If the bears push lower, and 13800 fails, the downside target is 10600. 

The recent action typically shows a stronger yen = lower dollar/yen = lower Nikkei = lower equities and weaker yen = higher dollar/yen = higher Nikkei = higher equities. Everyone and his brother are short the yen and long the Nikkei. Lots of folks are in the DXJ (which is the same chart as the Nikkei). The stock market bulls win with a higher dollar/yen and Nikkei above 14400. The bears win with a lower dollar/yen and Nikkei collapsing under 13800. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.