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Posted by Gregory W. Harmon

Gregory W. Harmon has worked in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity and Portfolio Swaps Trading at Chase Manhattan, State Street Corporation and BNP Paribas.

Rise with the Land of the Rising Sun

by Gregory W. Harmon on September 11, 2013

in Stocks, Technical Analysis

Revisiting the currency wars, it seems that the Japanese market has settled out a bit. The Nikkei ($NKY) is consolidating around the 61.8% Fibonacci retracement of the move lower from 2007, building a symmetrical triangle on the weekly chart below. The triangle is now getting tight and with the Relative Strength Index (RSI) continuing to hold the mid line on each pullback, it makes sense to prepare for a possible break out higher as to approaches the top of the triangle this week. A Measured Move higher takes the Index to 19250, a stone’s throw from a full retracement of the down move. That would


have the Nikkei finally joining the rest of the world’s major market indexes in fully retracing the move from the financial crisis. Look for a break over 14500 as a trigger. Oh, so you don’t have an account in Japan? No problem. There is a Japan iShare ETF ($EWJ) shown below that is in the same pattern. The trigger there is 11.80 with a target on a Measured Move to 13.80 to start.



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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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