12 Dec 2013
Nikkei headed back towards 15,000?
FXstreet.com (Bali) - After an early analysis in which a tentative bearish outlook for the Nikkei 225 was given, the first half of the Tokyo session has played out in line with the initial bearish assessment.
After an initial jump to recover the upside, the Nikkei 225 futures chart was well capped by the H1 Tenkan seen at 15350, a suggestion that sellers came in at the first opportunity on a 'value area' to reinstate shorts. Key now will be ability to break below 15200/15220, potentially exposing 15100 ahead of 15050/15000.
Should further weakness in the Nikkei be observed post Nikkei lunch break, watch Yen crosses to expand short term downside momentum. However, failure for the Nikkei to get follow through communicates further range-bound action with some modest upside possible ahead of European market, where increase of flows will determine next moves.
After an initial jump to recover the upside, the Nikkei 225 futures chart was well capped by the H1 Tenkan seen at 15350, a suggestion that sellers came in at the first opportunity on a 'value area' to reinstate shorts. Key now will be ability to break below 15200/15220, potentially exposing 15100 ahead of 15050/15000.
Should further weakness in the Nikkei be observed post Nikkei lunch break, watch Yen crosses to expand short term downside momentum. However, failure for the Nikkei to get follow through communicates further range-bound action with some modest upside possible ahead of European market, where increase of flows will determine next moves.