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Nikkei points to a lower open - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - The Japanese Nikkei shed 0.99% or 180 points on Wednesday, closing the day at 18,191.32, and extending its decline further below the 18,000 mark in electronic trading as risk aversion dominated worldwide stocks.

    The Japanese benchmark fell for a third day in-a-row as worries coming from China and the Middle East forced investors into safe-haven assets, and away from stocks.

    Nikkei technical perspective

    “The index points to open the day sharply lower, and at levels not seen since October last year, presenting a strong bearish tone in its daily chart, as the index has extended further below its 20 and 100 DMAs, whilst the technical indicators have extended their declines to fresh 1-month lows within bearish territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart also supports a downward continuation, given that the technical indicators have lost upward strength below their mid-lines after correcting oversold readings, whilst the 20 SMA heads sharply lower well above the current level, now acting as a strong resistance around 18,245”.

    Support levels: 17,880 17,832 17,748. Resistance levels: 18,086 18,172 18,245.
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