FxWirePro Call Review: Add short positions in Nikkei 225 targeting 20,000

In an article published earlier this month, named, “FxWirePro: Bears eyeing 9-10 percent drop in Nikkei 225”, available at http://www.econotimes.com/FxWirePro-Bears-eyeing-9-10-percent-drop-in-Nikkei-225-1009381, we suggested that Nikkei 225 after eight consecutive weeks of rising, down for a second consecutive week and bears are targeting another 9-10 percent decline in the index.

Since then, the index has recovered somewhat and is currently trading at 22493. However, we would like to affirm our bearish view in this article would like to recommend selling the index to our readers with a target of 22000. The stop loss for this trade should be kept at recent peak around 23400 area. We would like to affirm our view that a correction in Nikkei 225 and other global indices have long been due and that is likely to exert pressure on the index.

In addition to that, in recent weeks, several policymakers have highlighted the risks involved in the expansionary monetary policies and we believe a re-tuning is likely in 2018 and that would exert pressure on the index sooner or later.