Talking Points:
- Nikkei 225 is currently below the 16,000 handle
- Prior low at 15,800 seems to have stalled downside momentum
- Long term range lows may be at risk on further downside conviction
Learn Good Trading Habits With the “Traits of Successful Traders” series
The Nikkei 225 is trading below the 16,000 handle at the time of writing, after the index managed to break the level and a rising trend line two days ago.
The break below 16,000 seemed to have put the spotlight again on a prior low at around 15,800, as the level appears to be acting as support again, stalling further downside momentum for the moment. A move below might put the focus on the 15,380 support followed by a longer term range bottom around 15,000.
The index seems to test the trend line and the 16,000 level for resistance. If price can manage a break above, levels of interest 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 zone at around 17,650 lurking at the top.
Nikkei 225 Daily Chart: June 15, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail instructor@dailyfx.com
