Nikkei presents a limited upward potential – FXStreet

By FXStreet FXStreet (Córdoba) – The Nikkei closed Thursday down 251 points or 1.32% at 19,046.55, having however, recovered from the fresh 5-week low of 18,852 reached the previous day. The index fell as a sudden advance in the Japanese yen affected export-related shares, and remained under pressure, all through the session.

Nikkei technical perspective

“Having recovered slightly in after hours trading, the index presents a limited upward potential ahead of the Asian opening, given that in the daily chart, the index is unable to advance beyond a bearish 100 DMA, while the technical indicators have lost their bearish strength, but remain well into negative territory”, said Valeria Bednarik, chief analyst at FXStreet. “For the shorter term, the 4 hours chart supports further declines as the latest intraday recovery stalled below a strongly bearish 20 SMA, while the technical indicators have turned lower below their mid-lines, after correcting the oversold conditions reached alongside with the mentioned low.”

Support levels: 18,945 18,852 18,797. Resistance levels: 19,070 19,148 19,220.
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Source:: FX Street