Nikkei 225 Update

The USDJPY currency pair recovered some of its previous day losses and broke the 91 level before settling at 90.45. Weakness in the Yen is usually good news for Japan’s stock market as it helps in making Japanese product more competitive.

Most investors are not positive on Japan’s stock market as the country continues to be plagued by an aging population and deflationary forces in the market.

However looking at the phase chart, the Nikkei 225 is still in “Bullish” mode. The index faces a major resistance at 11000 level. If it is not able to go above the 11000 level then the support at 9867 needs to hold. If this support level is broken, then we will have a lower high and lower low. According to Dow theory, that will be bearish for the market.