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Nikkei might continue to fall - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The Nikkei 225 snapped a seven-day losing streak, closing the day at 15,749.84, up by 0.22%, underpinned by a recovery in energy-related stocks.

    The Japanese benchmark traded over 150 points higher at one point, but trimmed gains as the JPY kept rising against all of its major rivals. Chief Cabinet Secretary Yoshihide Suga warned against the yen’s strength, but speculative interest ignored his wording, and the USD/JPY plummeted below 108 for the first time since late 2014, weighing on export-oriented shares. The benchmark fell further in after hours trading, as Wall Street sunk, and it is poised to open the day around 300 points below the mentioned close.

    Nikkei technical view


    “Technically, the daily chart shows that, after quite a limited upward corrective move, indicators have resumed their declines and head strongly lower near oversold readings, signalling the index may continue falling towards the critical 15,000 level,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, technical readings in the 4 hours chart also support a continued decline, given that the 20 SMA heads lower almost vertically, while indicators have corrected extreme readings, but remain within bearish territory.”

    Support levels: 15,337 15,248 15,163. Resistance levels: 15,552 15,660 15,749.
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