8 Mar 2016
Nikkei downside remains favored - FXStreet
The Nikkei fell once again this Tuesday, down 127 points to end the day at 16,783.15, led by a stronger yen. The index fell to a fresh one-week low of 16,557 on renewed concerns over Chinese economy after poor trade balance figures. Export-related equities led the way lower, with Toyota falling 1.6% and Nissan shedding 3%.
Nikkei technical perspective
“Hovering around 16,600 ahead of the Asian opening, the daily chart shows that the technical indicators have extended their declines within positive territory, with the RSI indicator about to cross its mid-line towards the downside, suggesting a continued slump for this Wednesday, furthermore due to the yen continued strength during the last trading hours,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index has remained below its 20 SMA, meeting selling interest on approaches to it, while the technical indicators present clear bearish slopes below their mid-lines, reaching fresh monthly lows, also in line with additional declines.”
Support levels: 16,557 16,582 16,518. Resistance levels: 16,782 16,842 16,907.
Nikkei technical perspective
“Hovering around 16,600 ahead of the Asian opening, the daily chart shows that the technical indicators have extended their declines within positive territory, with the RSI indicator about to cross its mid-line towards the downside, suggesting a continued slump for this Wednesday, furthermore due to the yen continued strength during the last trading hours,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index has remained below its 20 SMA, meeting selling interest on approaches to it, while the technical indicators present clear bearish slopes below their mid-lines, reaching fresh monthly lows, also in line with additional declines.”
Support levels: 16,557 16,582 16,518. Resistance levels: 16,782 16,842 16,907.