Nikkei 225 Technical Analysis: Index Reacting to Prior Levels
- Nikkei 225 has bounced off prior support at 15,380
- 16,000 again in focus as possible resistance after a move higher
- Long term range lows may be at risk on further downside conviction
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The Nikkei 225 appears to be testing to 16,000 handle for resistance again after the index bounced off prior support at 15,380.
The index managed to break the 16,000 handle and a rising trend line last week, but the move to the downside seems to have stalled for the time being.
Further momentum to the downside might need to clear a prior support at 15,800, before focus may be put on the 15,380 support once more. A longer term range bottom sits 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 again, 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 20, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.