Nikkei: bears remain in control - FXStreet

Nikkei: bears remain in control - FXStreet

4 April 2016, 22:31
Vasilii Apostolidi

The Nikkei 225 closed the day at 16,123.27, down by 40 points, and into the red for fifth consecutive day, as the Japanese yen kept appreciating against most of its major rivals. Recent disappointing data, alongside with the upcoming fiscal 2016 corporate earnings weighed on investors' sentiment, who rushed to profit and sent the index into the red, after an early rally failed to extend. 

The index fell further in after hours trading, dangerously close to the 16,000 level ahead of Tuesday’s opening. 

Nikkei technical view

“From a technical point of view, the downward potential remains strong, given that in the daily chart, the technical indicators head sharply lower near oversold levels, whilst the index is far below a bearish 20 SMA,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have been consolidating in extreme oversold territory, resuming their declines at the time being, suggesting bears remain in control and may push the index further lower, particularly on a break below the mentioned psychological support at 16,000.” 

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Support levels: 16,000 15,912 15,827. Resistance levels: 16,092 16,181 16,287.

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