Nikkei: still room for further declines – FXStreet

By FXStreet The Nikkei 225 added 363 points to its previous decline, falling down to 15,713.39 on Wednesday. There’s a National holiday this Thursday in Japan, which means trading will remain limited, also because Wall Street has seesawed between gains and losses to end little changed daily basis, offering no clues to Asian traders.

Nikkei technical view

“The index is closing its seventh straight session in the red, and the daily chart suggests there’s still room for further declines, as the index has managed to post a lower low and a lower high far below a bearish 20 SMA, whilst the technical indicators maintain sharp bearish slopes below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators lack directional strength near oversold territory, whilst the 20 SMA heads strongly lower, around 16,172, where the index also presents several intraday highs.”

Support levels: 15,690 15,622 15,534. Resistance levels: 15,807 15,891 15,970.
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Source:: FX Street