Nikkei 225, Kospi and Hang Seng Forecasts – Asian Indices Looking to Break Higher?

Nikkei 225 Technical Analysis

The Nikkei 225 in Japan is a little negative during the trading session as we continue to threaten the 59,750-yen level. Breaking above that level would be a massive victory for the bulls as it would bring in all-time highs. It does look like we are at least trying to bounce a bit during the session, so I think we’re building that pressure to try to go to the upside.

This is interesting because it coincides with the Japanese yen being weak, and I think you need to pay attention to that as well because there is an area right around the 160.40-yen level that is the swing high from 1990. I think if we break above there in the US dollar, we could see the Nikkei take off as that makes exports even cheaper. We’ll just have to wait and see. Short-term pullbacks continue to be buying opportunities.

Kospi Technical Analysis

The KOSPI in South Korea is slightly negative as the 6,250 level continues to offer a little bit of resistance, but if we do pullback from here, the 6,000 level could be your floor. I think ultimately this is a market that you buy the dip and take advantage of momentum on the right-hand side of the V. After all, South Korea has been a leader for some time. No interest whatsoever in shorting here.

Hang Seng Technical Analysis

The Hang Seng 50 in Hong Kong initially plunged during the day, but it’s closing at just about break even. So, with this, it looks like the 26,250 level is going to continue to be an area of interest, possibly support. And if we can break above the highs of the session on Thursday, I think that opens up a much bigger move, perhaps the 27,000 level.

As things look right now, I think Hong Kong is also a place where, if the market dips, you’re looking to buy. There seems to be significant support near the 25,800 level and then again at the 25,600 level.

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