– Nikkei 225 appearing to have found some support at 15,800
– Gains may be corrective within context of the near term down trend
– Price seems to eye the 16,500 level for possible resistance
The Nikkei 225 is trading sideways after spiking down on the BoJ’s monetary policy announcement at the end of April, with the index appearing to have found support around the 15,800 level. The price has been trading between the well-defined 18,000 resistance 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.
With price pushing higher from the 15,800 support, traders may put their focus on the 16,500 resistance level which coincides with the 0.382 Fib as measured from the April 22 high at 17,769. A move above resistance might put the spot light on the 17,000 handle followed by the range top at 18,000.
With that being said, a well-defined bearish technical setup may offer selling opportunities at the 16,500 level, with a move below 15,800 appearing poised to test the range bottom at 15,000 with interim support at the April 7 low at around 15,380. However, confirmation is absent for the time being.
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Nikkei 225 H4 Chart: May 9, 2016
— Written by Oded Shimoni, DailyFX Research
To contact Oded Shimoni, e-mail [email protected]
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