1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

Nikkei: technicals favor a downward continuation - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    Japanese equities plummeted, with the Nikkei 225 losing additional 380 points to end the day at 15.732.82, after the release of soft local PMI figures and faltering confidence in the BOJ, as the Central Bank acknowledged that economic policies are not enough to fight disinflationary pressures.

    The Japanese yen appreciated sharply against all of its major rivals, weighing on export-oriented shares, while Kuroda's words on the possibility of sending negative rates further lower, hit the banking sector. The Mizuho Financial Group was among the worst performers, shedding 4.79% while the Japan Post Bank lost 3.64%.

    Nikkei technical perspective


    “The index extended its decline in after hours trading to fresh 1-month lows, as the soft tone in Wall Street drove futures lower. Trading around 15,630 ahead of the upcoming Asian opening, the daily chart presents a strong bearish momentum, as the technical indicators keep heading south near oversold territory, and the decline accelerated far below a now bearish 20 SMA,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have partially corrected extreme oversold readings, but maintain their negative tone, supporting a continued decline for this Wednesday.”

    Support levels: 15,542 15,430 15,338. Resistance levels: 15,690 15,776 15,849.
    For more information, read our latest forex news.
     

Share This Page