Nikkei 225 Retraces below 50% Fibonacci
- Strategy: Prepare for further declines under 50% Fibonacci
- Upward momentum has waned
- Support levels are 17,141 then 16,461.5, and resistance level is 61.8% Fibonacci at 18045.8
Nikkei 225 returned to the area below 50% Fibonacci at 17,438.5 on the second day of declines. A waning momentum indicates that further fall may be possible. A downward reversal would face a firm support level at 16461.5 which held throug March.
Investors with long position may consider to revise their strategy if the index extends lower and away from 50% Fibonacci, especially if it falls below the 17141 mark which capped the index for two weeks during late March. On the other hand, any rebound from here may face firm resistance around 61.8% Fibonacci at 18045.8.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Nathalie Huynh, Strategist for DailyFX.com
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