Nikkei 225 Technical Analysis: 16,500 in Focus Again
- Focus shift to 16,500 again after the index lost 17,000
- A break below 16,500 may imply a crack to the current bullish “structure”
- Sideways still the predominant trend in 2016
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The Nikkei 225 (CFD: JPN225) is trading lower, after falling alongside other risk assets the past Friday.
The index drop below 17,000 seemed to have hinted at things to come, and focus might shift for 16,500 at the short term for potential support.
The 16,500 level has proven key in the past for short term directional conviction, and a break below the level might suggest a crack to the current bullish structure with higher highs and lows since the Brexit decline.
Bullish hopes might be reignited however, if the index finds support to carve out a higher low.
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.
Nikkei 225 Daily Chart: September 12, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail email@example.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.