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Nikkei negative tone prevails - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - Chinese woes at the beginning of the week dragged Asian shares lower on Monday, with the Japanese Nikkei closing the day at 16,955.57, down 1.12%.

    The decline was led by risk aversion, as crude oil fell to fresh 12-year lows following the announcement of economic sanctions being finally lifted for Iran on a nuclear deal that will let the country to resume selling oil on international energy markets. Also, the sharp decline in Wall Street seen last Friday weighed on investors’ mood, and the Nikkei traded for most of the day at its lowest since January 2015.

    Nikkei technical view

    “The index trades around 16,840 ahead of this Tuesday's opening, and the daily chart shows that the negative tone prevails, given that the technical indicators hold within oversold territory, and that the 20 SMA continues heading lower well above the current level”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the technical indicators have bounced from oversold territory, but hold within negative territory, while the 20 SMA maintains a sharp bearish slope above the current level, providing a strong resistance around 17,130.”

    Support levels: 16,775 16,690 16,545. Resistance levels: 16,922 16,970 17,080.
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