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Nikkei technicals still favor the downside - FXStreet

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Asian equities failed to set a clear directional trend this Wednesday, pretty much taking a breather after the previous two-day sell-off.

    The Nikkei 225 closed down by 17 points at 15,715.36, pressured by the continued strength of the JPY. As of today, the index has fallen for seven straight sessions, and there are no technical signs suggesting the benchmark has bottomed, as futures are currently trading slightly below the mentioned close. Wall Street's positive tone however, may help it correct higher this Thursday.

    Nikkei technical perspective

    “In the meantime, the daily chart shows that the technical indicators have barely bounced from oversold levels, but remain far from signaling an upward move, whilst the 20 SMA has accelerated its decline above the current level,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the 20 SMA presents a strong bearish slope around 15,846, the level to beat to start thinking of a recovery, whilst the technical indicators have recovered from extreme oversold levels, and head north still far below their mid-lines.”

    Support levels: 15,645 15,542 15,430. Resistance levels: 15,776 15,846 15,968.
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