Talking Points:
- Nikkei 225 is currently above the 16,000 handle
- Another push lower might put the focus on a prior low at 15,800
- Long term range lows may be at risk on further downside conviction
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The Nikkei 225 is trading just above the 16,000 handle at the time of writing after pushing away from prior support at 16,500.
It seems like the push away from 16,500 could have an important role defining directional conviction after the price pivoted around the level for a couple of weeks.
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.
A break below 16,000 will coincide with a trend line support break, and may put the focus on prior low/support at around 15,800. A move below that level might put the focus on the 15,380 level followed by a long term range bottom around 15,000.
Levels of interest on a move higher could be the 16,500 level on a “support turned resistance” basis, followed by the 16,776 level, and the 17,000 handle, with the big range resistance lurking at the top.
Nikkei 225 Daily Chart: June 13, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail instructor@dailyfx.com
