Since Japan entered the "seventh wave" of the pandemic in mid-July, the number of confirmed infections has repeatedly hit new highs. The WHO's statistics show that from July 8th to August 14th, Japan's newly confirmed COVID-19 cases have ranked first in the world for four consecutive weeks. According to statistics from the Japan Broadcasting Association TV station, as of August 17th, the cumulative number of newly confirmed cases in Japan in the past month has exceeded 6 million. On the 18th, the number of newly confirmed cases in Japan exceeded 255,000 in a single day, reaching a record high again. 

The high number of infections has overwhelmed the Japanese medical system, and medical resources are currently under strain in many places. For instance, the occupancy rate of COVID-19 beds on the main island of Okinawa Prefecture has exceeded 100%, and beds for patients other than COVID-19 infections are also very tight, making it very difficult to be hospitalized for injuries or sudden emergencies. Moreover, the utilization rate of COVID-19 hospital beds in Kanagawa Prefecture reached 91%, Aichi Prefecture and Shiga Prefecture exceeded 80%, Fukuoka Prefecture, Nagasaki Prefecture, Shizuoka Prefecture, and many other places exceeded 70%, and the utilization rate of hospital beds in Tokyo was close to 60%. According to data released by the Fire Department of Japan's Ministry of Internal Affairs and Communications, there were 6,747 cases of "difficulty in emergency medical care" in Japan from 8th to 14th, a record high for three consecutive weeks. "Difficulty in emergency medical care" refers to cases where a patient is rejected more than 3 times by hospitals, reflecting that it is difficult for a patient to be sent to a doctor in time. Additionally, 14 medical institutions in Kyoto Prefecture, including the Affiliated Hospital of the Faculty of Medicine of Kyoto University, issued a joint statement a few days ago, saying that the spread of the seventh wave of the COVID-19 pandemic has reached a "catastrophic level" and that the medical system is now in a collapsing situation where "lives that could have been saved cannot be saved".   

Some analysts believe that the main reason for the spread of this wave of pandemics in Japan is that the Omicron BA.5 is diffusive, which is the most contagious variant and has a high reinfection rate for people who have been vaccinated or have been infected. Studies show that as many as 98% of people infected with the BA.5 strain have been vaccinated or previously infected with COVID-19.

Some experts believe that under the current pandemic prevention policy, this pandemic wave in Japan is far from its peak and will continue for a long time.  

Candlestick: This month, the real body of the candlestick broke the downtrend line started on September 30th, 2021, indicating that the overall bullish trend of the Nikkei officially starts.

Candlestick: This week closed with a spinning top candlestick, indicating the forming of a phased top. Moreover, the high of 29920 above is the key resistance, suppressing the ascending of the price by the upper band of the ascending channel starting from July 1st, 2022.   

It also indicates the movement of this week may approach the phased top. It may maintain fluctuations at highs or turn bearish next week.

Candlestick: Suppressed by the upper band of the ascending channel starting from June 21st, 2022, above. Besides, the key level is still 29220, indicating that 29920 is the end of the decomposed band and the end of the general wave. Therefore, it is possible to turn bearish with fluctuation next week.

Candlestick: The key support below is near 28620. The double tops of the section indicate the price today peaks.

Trend moving average: The trend lines 89 and 144 are still in a long arrangement, and the trend is mostly the main trend unchanged. The bears are dominant, and it is highly probable for a price correction in the evening session today.

Hourly key support level: The price breaks below the hourly support level of 28995, indicating that the correction trend will continue today.

MACD: Both lines are back to the zero axis with further space below.

CCL: Bulls are reducing their holdings, confirming the correction again this evening. 

Short-term moving average: the moving averages combine as one without deviation, indicating a high possibility of the price stepping back to the moving averages. It is recommended to go short at highs. 

Fast and slow trendlines: Forming a death cross at the overbought area, indicating sufficient space below.  

For CME Nikkei, it is recommended to go short at highs.

Entry price: 28980

Take profit: 28810

Stop loss: 29145