The surge of decline in NKY, which started in December, has stopped around the level of 16000. Currently, NKY index has regained part of the losses, growing up to the level of 17520 (Fibonacci 38.2%). If the price manages to consolidate above this level, the price can grow up to the level of 17975 (Fibonacci 50%, ЕМА200 on 4-hour chart). Breakdown of the level of 17975 and resistance level of 18050 (ЕМА50 on the daily chart), can generate downtrend. Consolidation of the price above the level of 18650 (ЕМА200 and ЕМА144 on the daily chart) will definitely trigger downtrend. The decline below the level of 16940 (Fibonacci 23.6%), may drop the price to the lows of the year around the level of 16000.
On the 4-hour chart the indicators OsMA and Stochastic show that buy orders are preferable; however the rise in price has stopped at the resistance level of 17650 (ЕМА144 on 4-hour chart). The upper level of the downward channel is also at the same level on the 4-hour chart. If today’s data on the US GDP for Q4 will be above the forecast of 0.8%, it can trigger further rise in price. Otherwise the price can go back to the downward channel on the 4-hour chart with the bottom limit near the level of 15500.
Support levels: 17520, 17350 and 16940.
Resistance levels: 17650, 17975 and 18050.
Buy Stop 17810. Stop-Loss 17420. Take-Profit 18000, 18350, 18650.
Sell Stop 17300. Stop-Loss 17550. Take-Profit 17000, 16500, 16000.