nikkei 225 mixed elements turn neutral for now 1824362016
Daily Outlook, Wed 03 Aug 2016 (Click to enlarge charts) What happened earlier/yesterday The Japan 225 Index (proxy for the Nikkei 225 futures) has breached […]
Daily Outlook, Wed 03 Aug 2016 (Click to enlarge charts) What happened earlier/yesterday The Japan 225 Index (proxy for the Nikkei 225 futures) has breached […]
The Japan 225 Index (proxy for the Nikkei 225 futures) has breached below the 16200 medium-term pivotal support in yesterday’s European session (02 August). It printed a low of 16008 in the early U.S. session before it managed to inch back up above the 16200 medium-term pivotal support in today’s Asian session.
This decline came in line with the JGB 10 year yields that has spiked up to -0.06% ( 4th consecutive day of rallies from 27 July 2016 low of -0.291 and renewed JPY’s strength that saw the USD/JPY breached below last Friday’s low of 101.94 and tested the upper limit of the long-term key support at 100.70 before it shaped a push up in the late U.S. session. In addition, the Japanese cabinet has approved 4.6 trillion yen in extra spending for the current fiscal which is just a fraction (16%) of the total 28 trillon yen stimulus package announced last week by PM Abe.
Supports: 16200/16000 & 15830
Resistances: 16400 & 16780
Mixed elements, turn neutral. Only a break above 16400 is likely to negate the current bearish tone to revive the bulls for a potential push up to target the next resistance at 16780 in the first step.
On the flipside, failure to hold above 16000 may open up scope for a further decline towards the next support at 15830.
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