Nikkei probable downward continuation – FXStreet

The Japanese main benchmark, the Nikkei 225, lost 1.00% or 160 points, to end at 16.026.76 as the yen strengthened following a sharp decline in Asian shares which spurred risk-averse trading. Tokyo shares started the day with a positive tone, but pared gains after Shanghai stocks lost ground and the PBoC weakened the Yuan’s daily reference rate against the dollar.

Nikkei technical perspective

“Trading around the mentioned close ahead of the new day, the daily chart shows that the index fell back below its 20 SMA that maintains a strong bearish slope, while the technical indicators have lost upward steam after approaching their mid-lines and began to turn lower, indicating a probable downward continuation,” said Valeria Bednarik, chief analyst at FXStreet. “The 4 hours chart shows that the index has been consolidating below its 20 SMA for the second half of the day, while the technical indicators are crossing their mid-lines towards the downside, in line with the longer term outlook.”

Support levels: 16,002 15,936 15,842. Resistance levels: 16,077 16,150 16,231.

The Japanese main benchmark, the Nikkei 225, lost 1.00% or 160 points, to end at 16.026.76 as the yen strengthened following a sharp decline in Asian shares which spurred risk-averse trading. Tokyo shares started the day with a positive tone, but pared gains after Shanghai stocks lost ground and the PBoC weakened the Yuan’s daily reference rate against the dollar.

(Market News Provided by FXstreet)