FxWirePro Call Review: Add additional short positions in Nikkei225

Back in February this year, in an article named, “FxWirePro: Sell Nikkei 225 1:3 risk reward ratio”, available at https://www.econotimes.com/FxWirePro-Sell-Nikkei-225-13-risk-reward-ratio-1158298 , we suggested going short in Nikkei225 (JPN225) as we expected the bullish tide of past decade (almost) to finally change. We also highlighted several reasons for the bearish outlook;

• The rates are moving higher, especially in the United States. A weaker dollar is likely to add to it. A higher risk-free rate in treasuries means higher cost of capital for stocks and higher discounting rate for equity analysts.
• The recent reports published by the U.S. Commerce Department with regard to Aluminum and Steel imports show just how serious the Trump administration is in curbing the trade deficit of the United States. Check out the reports at Commerce.gov
• In addition to that, it is quite clear that the course of monetary policy has changed with more and more central banks signaling a shift.

And recently, President Trump asked the Commerce Department to make a national security probe in auto and auto parts import, which is beneficial to our outlook as Japan is the second biggest car exporter in the world and the United States is the biggest importer.

In a follow-up review, we have urged our readers to maintain short positions and added the following interim targets.
 

Target 1 - 20030

Target 2 - 19570

Target 3 - 17450

Target 4 - 16080

In this review, we would like to urge readers to add additional short positions in Nikkei225 (JPN225) at the current rate of 22149 (JPN225).