Chart of the day

Where do we stand fundamentally?

Despite the BOJ has move on the interest rates Nikkei has pushed higher and did not reverse lower. Extremely weakening JPY is also contributing to the rise in Japanese equities and this gives a huge upside potential.

Nikkei is breaking above the strong consolidation resistance 39300 level for an extension higher in the long-term fifth wave and a retest of 41000.

Support for an upside extension and a test of 41000 again is 38500 and an invalidation level of a fifth wave extension higher is 37200. We need to see a confirmed break higher above 41000 to an extension into 45000.

_{Look for a long trade entry with a stop loss below 38500.}