Nikkei 225 Recovers as Suga Indicates Government Action To Stabilize Markets
Friday’s disappointing job report from the U.S Labor Department has laid a shadow on the chance of FED rate hike this month and hopes for a economic recovery. This has driven investors’ attraction to a safe-haven asset like the Japanese yen. Consequently, Japan’s Nikkei 225 dived to a near one-month low at 16246, as a stronger yen hurts Japanese exports. However, the index recovered from its loss after Japan’s Chief Cabinet Secretary Yoshihide Suga said that the government would take action to prevent speculative moves. On the hourly chart, the price bouncd upwards from the support at 16257 and is currently trading at 16465. The Stochastic shows that the Nikkei 225 is in overbought zone, however the %K line is still above the %D line indicating that the index is expected to surge a little more before pulling back.
Sell limit 16522, Take profit at 16413, Stop loss at 16548