Nikkei poised to open lower - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The Nikkei 225 posted a tepid advance on Tuesday, up by 31 points or 0.20% to close at 16,054.43. The leading sector during the Asian session was the banking one, led by the SoftBank Group Corp, which rose by 14% after announcing a share buyback, up to 500 billion yen to purchase as much as 14.2% of its own shares. The Japanese benchmark eased in after-hours trading, tracking oil prices in their way down, and poised to open the day around 15,900.

    Nikkei technical view

    “The daily chart shows that the recent upward corrective move has lost steam, as the technical indicators are turning south within bearish territory, after erasing the oversold conditions reached last Friday. In the same chart, the index is well below a bearish 20 SMA that offers a strong resistance around 16,590, the level to break to confirm a more sustainable recovery”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart the index continued to trade above a mild bullish 20 SMA, while the technical indicators have turned flat within positive territory, reflecting the lack of volume seen during the previous session”.

    Support levels: 15,810 15,727 15,619. Resistance levels: 15,944 16,032 16,154.
    For more information, read our latest forex news.

Share This Page

free forex signals