JPN225 Technical Analysis: No Man Land unto Next Support
- Nikkei 225 Strategy: Sit still or small intraday trades around 76.4% Fibonacci
- No clear stops on the way down after breach of major support at 15,978
- Volatility and global sentiment continue to drive regional equities
Chaotic risk rout spread and the JPN 225 fell into no man’s land below 15,978, a previous support that was broken earlier today. There is no clear hindrance to the index from here on unto the next support at 14,353. One possible technical level to consider is the 76.4% Fibonacci of a 2-year climb during 2014 and 2015.
Short term traders may position for a modest struggle around this Fibonacci at 15,545 before the index may continue its way down. For long-term traders, this is not a good time to place positions given the absence of clear technical indications.
Firm support levels ahead are 2-year low at 14,353, followed by 2014’s yearly low at 13,830.
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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.