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Japan Airlines Stock Signals Weakness, Revenue Forecast 1,684B Yen

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Aayush Jindal

Key Highlights

  • Japan Airlines stock price struggled to clear the ¥2,825 resistance.
  • A key rising channel is forming with support near ¥2,740 on the 4-hour chart.
  • The company published its quarterly report and forecast revenue of ¥1,684B in FY2023.
  • The current price action indicates weakness and a possible breakdown below ¥2,700.

Japan Airlines Price Analysis

After finding support near ¥2,615, Japan Airlines (TYO: 9201) started a decent increase. It climbed above ¥2,700 but struggled to clear the ¥2,825 resistance zone.

Recently, the company published their earnings report for Q2 2023. Six months revenue was JPY 820,938 million and the profit before financing and income tax was JPY 91,235 million. The company also forecasted revenue of ¥1,684B in FY2023.

Looking at the 4-hour chart of Japan Airlines stock, there was a clear rejection near ¥2,825. The price started a downside correction below the ¥2,800 and ¥2,780 levels. There was a move below the 23.6% Fib retracement level of the upward move from the ¥2,615 swing low to the ¥2,825 high.

The price is now consolidating above the ¥2,750 support. There is also a key rising channel forming with support near ¥2,740 on the same chart.

If there is a downside break below the channel support, the price could dive toward ¥2,700 or the 61.8% Fib retracement level of the upward move from the ¥2,615 swing low to the ¥2,825 high.

Any more losses might send Japan Airlines (TYO: 9201) prices toward the ¥2,615 low. Conversely, Japan Airlines’ stock price might attempt another increase above the ¥2,775 level. The main resistance is still near ¥2,825.

A close above the ¥2,825 level could set the pace for a larger increase. In the stated case, there could be a move toward the ¥2,950 level.

Economic Releases

  • US Initial Jobless Claims - Forecast 218K, versus 217K previous.
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