Nikkei 225 Technical Analysis: 16,000 Support Now in Focus
- Focus shifts to 16,000 again after the index lost 16,500
- The move below 16,500 marks a break to the short term bullish structure
- Index edging slightly higher from last swing low
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The Nikkei 225 is edging higher today, slightly bouncing from the last swing low around 16,332.
The Index signaled an important short term technical development when it broke below the 16,500 level, suggesting that the short term bullish structure since the Brexit decline might have been broken (combined with the break of the short term trend line and a move back below the 200 day SMA).
The index is finding a slight halt to the decline at around the last swing low at 16,332; but focus might be on the 16,000 level for potential support.
Prices have 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.
In turn, this could imply that a move below 16,000 could expose the range lows around 15,000.
However, if bulls manage to push prices above the 16,500 level, eyes may quickly turn to 17,000 for potential resistance.
Nikkei 225 Daily Chart: September 19, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
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