Talking Points:
- Nikkei 225 continues to pivot around 16,500
- Sideways trading still the prevailing trend
- Index nudging lower after initial post BOJ spike
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The Nikkei 225 is trading lower today, after the index posted a spike higher following the BOJ’s monetary policy announcement which saw the index reclaim the 16,500 level.
At this stage, sideways trading is the still very much the order of the day.
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 the shorter term, the index is trading in a narrower range between 17,000 to the 16,000 handle, with the 16,500 level in the middle indicative of short term momentum.
If the index reverses course following the rest of the day’s developments focus seems likely to shift to the 17,000 level.
The move to the downside might expose the 16,000 level, followed by the range lows around 15,000.
Nikkei 225 Daily Chart: September 26, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail oshimoni@dailyfx.com
Follow him on Twitter at @OdedShimoni
