Nikkei Forecast October 2, 2014, Technical Analysis

Nikkei as you can see initially tried to rally during the day on Wednesday, but like most other indices that we follow, pulled back in order to fall. However, the ¥16,000 level just below is very supportive as far as we can tell, and as a result we are willing to buy supportive candles between here and ¥15,800. Ultimately, we believe that this market is heading to the ¥20,000 level, and possibly even higher based upon the fact that the Bank of Japan continues to keep its monetary policy very loose and the Japanese yen continues to lose value.