Nikkei negative tone prevails - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - The Japanese benchmark, the Nikkei 225, fell by 466 points and closed the day at 17,218.96, its lowest level in over three months. Coming from a long weekend, the Tokyo index tumbled amid weakening oil prices, falling for a sixth day in-a-row, and despite Chinese shares managed to end the day flat.

    The index has managed to recover some ground in after hours trading, poised to start the new day around 17,360.

    Nikkei technical view

    “Nevertheless, the negative tone persists, given that the index has remained below Monday's high and well below its moving averages, whilst the technical indicators remain near oversold territory, lacking directional strength”, said Valeria Bednarik, chief analyst at FXStreet. “For the shorter term, the 4 hours chart suggests that the index may advance some this Wednesday, as the technical indicators are heading higher within bearish territory, whist the 20 SMA caps offers an immediate resistance at 17,438, the level to overcome to confirm a bullish day”.

    Support levels: 17,315 17,263 17,182. Resistance levels: 17,438 17,526 17,609.
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