ASX 200 and Nikkei 225 Value Forecasts for the Week Forward

ASX 200, Nikkei 225 Value Outlooks:

ASX 200 and Nikkei 225 Value Forecasts for the Week Forward

Final week we famous that the Australian ASX 200 has been trapped in a variety since early June, fluctuating between resistance round 6,200 and assist close to 5,800. On the time, we outlined two potential eventualities, both a escape commerce or a continuation of the buying and selling vary. Evidently, the ASX 200 stays at an important crossroad, holding throughout the band of resistance across the 6,200 degree. Due to this fact, the identical buying and selling methods are relevant at this stage because the Australian fairness index awaits its subsequent huge transfer.

ASX 200 Value Chart: 4 – Hour Time Body (Could 2020 – October 2020)

Nikkei 225 Value Forecast

Elsewhere, the Japanese Nikkei 225 trades just some share factors beneath its pre-covid ranges. Regardless of lackluster financial progress previous to the pandemic, the Nikkei 225 has recovered most of its losses and appears to be on the verge of recapturing prior highs. Thus, continued demand for threat belongings would possibly help the Japanese index in its try to interrupt above resistance round 23,820 which can open the door for the Nikkei to assault secondary resistance round 24,125 – the place the index was buying and selling earlier than covid struck.

Nikkei 225 Value Chart: 4 – Hour Time Body (Could 2020 – October 2020)

Critically, the Nikkei 225 has established a collection of higher-highs since August, accompanied by a collection of higher-lows extra not too long ago. Collectively, the peaks and troughs have etched out a gradual uptrend that has guided the Nikkei to the place it’s as we speak. Consequently, the longer-term outlook for the Nikkei stays encouraging whereas shorter-term pullbacks might function wholesome consolidation.

Suffice it so say, the Nikkei has rebounded surprisingly nicely and will it keep its ascending channel, might proceed to churn larger within the weeks and months forward as financial coverage stays accommodative. That being stated, I’m hesitant to counsel it can outpace the US indices, however within the occasion of broader threat aversion, it may need much less to lose than the white-hot Nasdaq 100 as an example – a theme I mentioned within the fourth quarter fairness forecast. Within the meantime, observe @PeterHanksFX on Twitter for updates and evaluation.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and observe Peter on Twitter @PeterHanksFX