The Nikkei 225 is the stock market index for the Tokyo Stock Exchange (TSE). For those who do not know the Tokyo Stock Exchange – the total market capitalization of its listed companies makes it the second largest stock exchange in the world next to the New York Stock Exchange. Thus, whatever happens to the country as exhibited in this stock exchange definitely has a huge impact on the global stock markets. The Nikkei 225, like what I mentioned about the Shanghai Stock Exchange Composite Index on my last post on it (kindly check here), is also the leading barometer of Japan’s economy along with the Topix. Some of the famous companies listed in the TSE are Sony, Toyota and Honda.
Chart-wise, the Nikkei 225 has been moving sideways for more than a year now. Currently, the index is more inclined to going down during the market opening of the week ahead as the European and US stock markets fell sharply lower last Friday. In case the Tokyo based index drops, there’s a strong support at the 9,000.00 psychological area. If the value slips and slides further below that psychological marker, the next support could be 8,493.77. On the other hand, the current resistance could be the 3-month downtrend. If this index moves past above that, the next resistance could be 9,807.36. Once 9,807.36 gets cleared out, the next resistance could be the 10,000.00 psychological level.