Nikkei 225 Technical Analysis: Index Losing Ground
- Index breaks below 17,000, which might shifts focus to 16,500 again
- A higher low could keep bulls optimism at this stage
- Sideways still the predominant trend in 2016
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The Nikkei 225 is trading lower, losing ground after failing to hold above the 17,000 levels as support.
The price has been ranging between the well-defined 18,000 resistance zone and the 15,000 support since the start of the year, with gains appearing to be corrective in the context of the near term down trend from June 2015 highs.
The failure to hold above 17,000 might shift focus to the 16,500 support followed by the 16,000 handle.
Bullish hopes might be reignited however, if the index finds support to carve out a higher low. This makes the 16,500 level key as a break lower will undermine the recent run of higher highs and lows.
Volatility continues to be subdued, with 20-day ATR volatility measures now indicating the lowest levels since late 2014.
Nikkei 225 Daily Chart: September 8, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail firstname.lastname@example.org
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.