After an aggressive selloff that pushed Japan 225 (Nikkei) into oversold territory, the index printed a solid bullish reaction off the 30,500 key zone. This area aligns with prior demand and offers a clean invalidation level for long positioning. With heavy bearish sentiment already priced in, I’m positioning long with TP near the premium zone around 40,000.
The fundamental picture may be stormy, but technically, this is a textbook reversal play, I’m ready to ride it.
Technicals:
• Price reacted from major support around 30,500–30,800 zone, a level that held in the past.
• Daily imbalance filled, creating the perfect spot for a potential rebound.
• Descending channel break on lower timeframes indicates early bullish structure shift.
• Target zone: 39,000–40,000.
• SL: Below recent swing low, respecting tight risk management.
Fundamentals:
• Global Risk-Off Sentiment: Recession fears and tariffs pushed risk assets lower — Nikkei included.
• Tariff-Driven USD Weakness: US tariffs created uncertainty and drove global equity selloffs. However, hopes for a US-Japan trade deal are increasing, favoring the JPY and supporting Japanese equities.
• BOJ-Fed Divergence: BoJ is expected to raise rates due to broadening inflation, while the Fed is seen cutting rates soon. This differential supports capital inflows into Japan.
• Flight to Safety: Japan’s stable economy and improving policy outlook make it attractive as global volatility increases.
The selloff may have been excessive due to panic over macro headlines. However, price structure tells its own story, and it’s hinting at a bullish reversal. With multiple technical and fundamental confluences lining up, this is a well-balanced long opportunity with clear risk parameters.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
The fundamental picture may be stormy, but technically, this is a textbook reversal play, I’m ready to ride it.
Technicals:
• Price reacted from major support around 30,500–30,800 zone, a level that held in the past.
• Daily imbalance filled, creating the perfect spot for a potential rebound.
• Descending channel break on lower timeframes indicates early bullish structure shift.
• Target zone: 39,000–40,000.
• SL: Below recent swing low, respecting tight risk management.
Fundamentals:
• Global Risk-Off Sentiment: Recession fears and tariffs pushed risk assets lower — Nikkei included.
• Tariff-Driven USD Weakness: US tariffs created uncertainty and drove global equity selloffs. However, hopes for a US-Japan trade deal are increasing, favoring the JPY and supporting Japanese equities.
• BOJ-Fed Divergence: BoJ is expected to raise rates due to broadening inflation, while the Fed is seen cutting rates soon. This differential supports capital inflows into Japan.
• Flight to Safety: Japan’s stable economy and improving policy outlook make it attractive as global volatility increases.
The selloff may have been excessive due to panic over macro headlines. However, price structure tells its own story, and it’s hinting at a bullish reversal. With multiple technical and fundamental confluences lining up, this is a well-balanced long opportunity with clear risk parameters.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Nota
Up +13.30% and halfway to TP.The price has broken out cleanly from the consolidation range and absorbed the first wave of sellers with strength. The move is steady, not aggressive — a sign of a healthy trend continuation. At this stage, risk management kicks in: SL adjustments made, profits protected.
Stick to your system, let the trade breathe, and as always — Pay Yourself when in profit.
Dagangan ditutup secara manual
Japan 225 trade closed at 37,146 for an 18% gain after nearly a month in profit with no drawdown, clean execution, clean return; I’m out before it consolidates—Pay Yourself when in profit!
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.