Nikkei retraces weekly gains

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 12, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - The Japanese Nikkei ended the day up 0.03% or 6 points at 19,697.77 on Thursday, but fell in electronic trading after the close, following the sharp decline in Wall Street.

    Asian markets showed little progress at the beginning of the day, despite local economic data beat expectations. Among others, Japan's core machinery orders rose by 7.5% in September, but orders were down 1.7% from a year earlier, better than the expected drop of about 4.0%.

    Nevertheless, action began after the close and following Central Banks' officers words that spurred risk aversion sending the index down to 19,452, where it stays ahead of the opening.

    Nikkei technical perspective

    “The daily chart shows that the index has erased most of this week gains and that the technical indicators have turned south, with the Momentum indicator heading lower around near its 100 level, and the RSI retreating from overbought levels in line with further declines. In the same chart, the 200 SMA stands at 19,371, providing a strong support for the upcoming hours”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index extends below its 20 SMA while the technical indicators head south below their mid-lines, supporting a continued decline for this Friday”.

    Support levels: 19,371 19,290 19,211. Resistance levels: 19,502 19,615 19,707.
    For more information, read our latest forex news.

Share This Page

free forex signals