It goes beyond Trumps golf game with Prime Minister Abe and watching sumo wrestling to the trend in the. There are three main bearish characteristics.
The first is the break under the uptrend line.
The second is the long-term compression of GMMA. This shows that investors are losing confidence in the uptrend's potential to continue.
The third is the GMMA crossover in the long and short term, worth the trend line.
This combination of functions is very bearish. A break under historical support near 20800 would be the definitive confirmation of the trend break and a continuation to test previous lows near 19200. As demonstrated in December 2018, a fall below the support level could lead to a very rapid fall. Historical support in the neighborhood of 19200 is relatively well established and traders will look for consolidation to develop in this area.
Japan has a lot to lose in this US-initiated trade war and the Nikkei reflects this concern. At least Sumo wrestlers play by the rules.
Disclaimer: Daryl Guppy is a leading international expert in the field of financial technical analysis and special advisor for Axicorp. Guppy regularly appears on CNBC Asia and is known as "The Chart Man". Disclaimer: Daryl Guppy is not a financial advisor. These comments are for educational purposes only and provide an example of applied technical analysis.
