This is a situation where pullbacks continue to be buying opportunities, and I think there are a couple of areas that you should be paying close attention to underneath.
However, keep in mind that the Bank of Japan is likely to continue to see volatility as a major issue, but that does not necessarily mean that the market is going to get sold off as soon as it crosses that line, just that the central bank will be paying close attention to the idea of whether there is a huge burst higher. A slow and steady grind could be tolerated, especially as eventually central bank action fails given enough time. This is a situation where pullbacks continue to be buying opportunities, and I think there are a couple of areas that you should be paying close attention to underneath.
The most obvious one of course is the ?140 level, which is a large, round, psychologically significant figure, and an area where we had seen resistance previously. Furthermore, we have the 50-Day EMA in that general vicinity, so, it’s likely to continue to be important. Any balance from that area could be a nice buying opportunity, as it is a bit of a value play.
However, he should also keep in mind that the ?142.50 level is supported as well. This is especially true when you look at the smaller time frames, but nonetheless, it also says the same thing to me, that you should be looking for value every time you get an opportunity. Ultimately, if we can break above the ?145 level, it’s likely that we can investigate the ?147.50 level, and then eventually the ?150 level which has a lot of psychology attached to it. Regardless, I have no interest in shorting this market anytime soon, so keep that in mind.