nikkei 225 potential recovery above 16200 medium term pivotal support 1822862016
Daily Outlook, Tues 26 July 2016 (Click to enlarge charts) What happened earlier/yesterday The Japan 225 Index (proxy for the Nikkei 225 futures) has plummeted […]
Daily Outlook, Tues 26 July 2016 (Click to enlarge charts) What happened earlier/yesterday The Japan 225 Index (proxy for the Nikkei 225 futures) has plummeted […]
(Click to enlarge charts)
The Japan 225 Index (proxy for the Nikkei 225 futures) has plummeted by 2% to print a current intraday low of 16343 in today’s Asian morning session (26 July) in line with a weaker performance seen in the U.S. benchmark indices where the S&P 500 shed 0.30%.
Interestingly, the current decline seen in the Japan 225 Index has led it back to a significant medium-term support zone as market participants wait for potential new monetary easing policies (in direct form of “helicopter money”) from BOJ when its officials meet on this Friday, 29 July.
Pivot (key support): 16200
Resistances: 16730 & 17100/240
Next support: 15825
Potential recovery as the Index is now resting on its medium-term support zone with positive elements seen from momentum indicators. As long as the 16200 medium-term pivotal support holds, the Index is likely to see a potential push up in the first step to test the intermediate resistance at 16730. A break above 16730 is likely to add impetus for a further recovery to target the next resistance at 17100/240.
However, a clear break (daily close) below the 16200 medium-term pivotal support is likely to invalidate our preferred bullish scenario for a deeper slide to test the next support at 15825.
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