Nikkei 225 Technical Analysis: Index Spikes Higher Following BOJ
- Focus shifts to 17,000 again after the index moved above 16,500
- Break above 17,000 might expose range highs
- Gains still appearing to be corrective in the context of the near term down trend
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The Index signaled an important short term technical development when it broke below the 16,500 level, but fundamentals overshadowed technicals as the central bank updated their policy.
Nikkei 225 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.
At this stage, the move above 16,500 seems likely to shift focus to the 17,000 level in the short term.
If the index reverses course following the rest of the day’s key developments, the move might expose the 16,000 level, followed by the range lows around 15,000.
Nikkei 225Daily Chart: September 21, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
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