Nikkei 225 Remains Range-Bound
- Strategy: Prepare for an eventual break out of range
- The index traded range-bound between 16525.5-17438.5
- Momentum lackluster hinted at prolonged consolidation
The Nikkei 225 traded range-bound at the start of this week, between a support level at 16525.5 and a resistance level at 17438.5. Momentum lacklustre indicates that this consolidation may last for a while.
There is currently no threat of a breach at either boundary. If a breach materialises, the outer support and resistance levels come at 15523 and 18045.8 respectively.
Investors could take this time to work out their positioning in the case of an eventual break out of range. Chances for range trade is slim at the moment, given low volatility.
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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.