The Japan 225 Nikkei Index is setting itself up for a nice and juicy drop to 15165 level. It is currently trading at 15563 and rising. Traders would know that the Nikkei and Yen are inversely correlated. So when the Nikkei falls, the Yen rises and vice versa. This drop in Nikkei adds validation to GBPJPY short positions (short term trade) and also a potential drop in CADJPY. All in all, beware of shorting the Yen.
As with Renko its hard to say when, but I reckon that the change of mood in the markets is around the corner. If not next week, then possibly by mid-August.
For the Nikkei, expect the first target to the downside at 15415 and 15165 levels and then a bit lower.
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