Binary NIKKEI225 continues trading in consolidation. The zone for trading is closed in a range of 550 points. It is huge enough to enable the binary traders to place sideways bets. The uncertainty is still weighing on the upside potential of the binary index. This is the source of the increased volatility.
The technical picture of NIKKEI225 is complex. The binary traders should observe different time frames, 1h and daily charts, in order to capture the possible development of the binary index. The daily chart shows a downside channel that has been broken upward. The resistance of the pattern has been tested several times as a support and the tests turned out to be successful. The binary options advanced to the next resistance which seems to be strong enough for now. The resistance is drawn from 8775 points through 8658 points. The underlying index is just below the aforementioned level.
The zone between the resistance and the channel is expanding. It is highly possible that it is the field for trading in the coming days. The 1h chart gives another view of the binary index. There are several waves related to each other by the numbers of Fibonacci. The wave from 8695 points to 8380 points has been retraced 88.6% at 8658 points. The subsequent wave from 8380 points to 8658 points has been retraced 78.6% at 8435 points. The current wave is from 8435 points to 8615 points. It retraces the previous one at 78.6% and starts retreating. It seems as though 8615 points represents a short-term resistance for the binary options.
Potential downside targets are 8500 points, followed by 8440 points.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.