Nikkei 225, Hang Seng 50, and ASX 200 Forecasts – Asia Looking Volatile Again

Nikkei 225 Technical Analysis

The Nikkei 225 has bounced a bit during the early part of the trading session here on Monday from the crucial 63,600-yen level. Bouncing from that level validates this previous resistance area as support, and also there are some other things going on.

Not the least is going to be the fact that the rate spreads and GDP in Japan continue to be a bit of a moving target, and of course, the US dollar is near the yen intervention zone, so I think that keeps this one lively, but it looks like 63,600 is going to hold as support.

Hang Seng Technical Analysis

The Hang Seng has bounced a little bit as well, with the interest rates in America drifting a little bit lower, helping the market here as the Hong Kong Monetary Authority mirrors the Federal Reserve’s interest rate policy. The 24,250 level is an area that I think continues to offer support. 25,000 above offer resistance in Hong Kong at the moment.

ASX 200 Technical Analysis

The ASX 200 has been absolutely clobbered during the trading session as iron ore has collapsed, and that, of course, has put a lot of pressure on major miners like BHP, Rio Tinto, etc. The commodity weakness is tied directly to a softer industrial project trajectory in China.

So, watch this 8500 level. If we can bounce from here, it might be a nice short-term opportunity, otherwise, I could see Australia dropping to 8300. This is an area that has been important previously, and it now looks like we are trying to determine whether or not we can bounce back, or visit that level.