Today we take a look at Nikkei which is close to breaking a triangle formation to the upside. If Nikkei manages to recapture 22800-23k and stay above it, I expect that this rise will be explosive towards 24300 or higher.
Short-term support is at 22400. If we break below this level then the break out is postponed. Price could pull back towards 22000-21700 where the lower triangle support is found. If price breaks below 21700 then the bullish scenario is cancelled all together.
So far the rise from March lows looks impulsive, while the sideways movement since then looks like a correction.
This fits well with our bullish view that prices are breaking out now. Breaking above 23060 will increase dramatically the chances of success of the bullish scenario.
