There is a progress in US-China negotiations
Progress in US - China trade negotiations provoked an increase in global stock indices. Quotations for Nikkei will increase or not?
Chinese President Xi Jinping said that the US-China trade negotiations will continue this week. He expressed the hope that the parties would come to a mutually beneficial agreement. A possible weakening of the yen, against the background of risk reduction, may help improve the financial performance of Japanese exporters. In the midst of global trade wars, the yen was in demand by investors as a safe-haven currency. An additional positive for the Nikkei could be Japan’s GDP growth in the 4th quarter of 2018 by 1.4% in annual terms, after the economic downturn in the 3rd quarter. As a result, Japanese GDP for the last year grew by 0.7%. The increase has been observed for the 7th year in a row.
On the daily timeframe, Nikkei: D1 broke up the resistance line of the descending channel. A number of technical analysis indicators formed buy signals. The further price growth is possible in case of positive macroeconomic and corporate news.
Summary of technical analysis
Position Buy
Buy stop Above 21300
Stop loss Below 20000
Progress in US - China trade negotiations provoked an increase in global stock indices. Quotations for Nikkei will increase or not?
Chinese President Xi Jinping said that the US-China trade negotiations will continue this week. He expressed the hope that the parties would come to a mutually beneficial agreement. A possible weakening of the yen, against the background of risk reduction, may help improve the financial performance of Japanese exporters. In the midst of global trade wars, the yen was in demand by investors as a safe-haven currency. An additional positive for the Nikkei could be Japan’s GDP growth in the 4th quarter of 2018 by 1.4% in annual terms, after the economic downturn in the 3rd quarter. As a result, Japanese GDP for the last year grew by 0.7%. The increase has been observed for the 7th year in a row.

On the daily timeframe, Nikkei: D1 broke up the resistance line of the descending channel. A number of technical analysis indicators formed buy signals. The further price growth is possible in case of positive macroeconomic and corporate news.
- The Parabolic Indicator gives a bullish signal.
- The Bollinger bands have narrowed, which indicates a volatility decrease. Both Bollinger bands are titled upwards.
- The RSI indicator is above 50. No divergence.
- The MACD indicator gives a bullish signal.
Summary of technical analysis
Position Buy
Buy stop Above 21300
Stop loss Below 20000