Member access

4-Traders Homepage  >  Indexes  >  Japan  >  JAPAN NIKKEI AVERAGE INDEX(225)    N225   JP9010C00002

Real-time Quote. Real-time Japan - 10/01 11:00:00 pm
15792.77 JPY   -1.80%
1d agoDJJapan Stocks Lead Asia Lower
1d agoDJMARKET SNAPSHOT : U.S. Stocks Skid; Russell 2000 In Correction Territory
1d agoDJMARKET SNAPSHOT : U.S. Stocks Skid; Russell 2000 In Correction Territory
SummaryQuotesChart AnalysisNewsAnalysisComponents 
Analysis summary4-Traders Strategies 

JAPAN NIKKEI AVERAGE INDEX(225) : Japan could slide back into recession

11/13/2012 | 08:21am
Opinion : Bearish under JPY 8440
Target price : JPY 8150 Potential: 3.44%
The Tokyo Stock Exchange continues to fall down after the release of weak economic figures. Despite endless government helps to support the country, the third largest economy continues to deteriorate and the specter of a deep recession looms again over investors.

After two quarters of growth, the GDP decreased by 0.9% during the third quarter. On an annualized basis, the contraction is very strong (3.5%) which is its biggest drop since the one that followed the tsunami of March 2011.

The deterioration is mainly due to weak exports to Europe also in recession and to China where Japanese investors and retailers suffer from territorial dispute between the two countries over islands in South China Sea. The deterioration of relations with China affects the Japanese economy, both in trade and in the tourism sector.

In addition, in the domestic market, Japanese household spending fell 0.5% compared to the second quarter. Consumers were more careful as they lost lack of confidence in the future and feared of lower income.

Technically, the dynamics weakens again in an uncertain economic environment. A weekly close below the 8450 level would open the way to a quick return on the 8200 support. We will take short position under 8450 points to target 8200 points and 8000 points by extension. We can trade the break of the 8450 level using the Nikkei 225 1212 Future (code: NKDXXXX on the CME market).
JAPAN NIKKEI AVERAGE INDEX(225) : JAPAN NIKKEI AVERAGE INDEX(225) : Japan could slide back into recession
Copyright (c) 2014 4-Traders.com



React to this article

Disclaimer: 4-traders.com is a website published by SURPERFORMANCE SAS. Surperformance or 4-traders.com is not a registered broker-dealer nor a registered investment adviser. You understand that this web site and its content is furnished for your personal, noncommercial, informational purposes only, and that no mention of a particular security in this website constitutes a recommendation to buy, sell, or hold any other security, nor that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Surperformance and 4-traders.com services will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Information regarding trading and investment as provided by Surperformance professional is not tailored to the investment needs of any specific person. You acknowledge that you are responsible for your own financial decisions and should seek a registered financial agent depending on your own risk tolerance to advise you on your personal trading activities.

Advertisement
Dynamic quotes  
ON
| OFF