Nikkei further falls are likely – FXStreet

By FXStreet FXStreet (Córdoba) – Asian share markets surged this Tuesday, with the Nikkei 225 snapping a three-day losing streak to close at 17,048.37 up by 0.55%. With no clues from Wall Street, as the US was on holiday last Monday, the Japanese benchmark recovered on the back of yen’s weakness, with export-oriented companies leading the way higher.

The index traded as high as 17,277, before easing some amid lackluster Chinese macroeconomic data.

Nikkei technical perspective

“Currently trading around 16,940, futures for the index are down following Tuesday Wall Street’s decline, and the daily chart suggests that further falls are likely, as the Momentum indicator resumed its slide near oversold levels, while the candle presents a long upper wick, reflecting strong selling interest waiting at higher levels. In the same chart the RSI indicator hovers around 30, still far from suggesting an upward continuation”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is now below a bearish 20 SMA, while the technical indicators are turning slightly higher within bearish territory, rather reflecting the latest intraday bounce than announcing further gains”.

Support levels: 16,857 16,775 16,690. Resistance levels: 17,005 17,080 17,192.
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Source:: FX Street