bruceyam

Earthquake hit Japan, First Short Nikkei, then buy

Short
TVC:NI225   Nikkei 225 Index
On January 1, 2024, Japan experienced a significant seismic event, a 7.6 magnitude earthquake. The aftermath is still being assessed. Examining past earthquakes reveals a pattern: after the 1995 Hanshin Earthquake, the Nikkei dropped by 19.75%, and following the 2011 Tohoku Earthquake with a magnitude of 9, the Nikkei declined by 18.49%. If history repeats, with an 18% drop this time, the Nikkei 225 may test the 0.382 support at 27,230. Market developments will unfold upon opening. In both the 1995 and 2011 earthquakes, the Bank of Japan implemented loose monetary policies. However, as the JPY is a safe haven, USDJPY depreciated in both instances, falling by 20% in 1995 and 8.13% in 2011.

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