JPN 225 Technical Analysis: Consolidate after Brief Support Break
- Nikkei 225 Strategy: Downtrend in place, despite consolidation below 10-day MA
- Break of 10-day moving average would support further upside development
- Support level at 15,978 holds gingerly before next week
JPN 225 retraced up to 10-day moving average today after a brief breach of 15,978 support level in yesterday’s session. The MA and resistance level is key to further upside development.
Downtrend signal is still in place among moving averages, though upward momentum hints at more consolidation into next week. A key to downtrend resumption will be a clean break of support level at 15,978, which would open up leeway towards 15,000 mark.
Bear traders should watch out for break of resistance to adjust stop loss. Meanwhile dip buyers may realise opportunities if the index repeatedly fail to break support level, instead hovers over it in consolidation mode.
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--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.