Nikkei technical perspective still favors the downside – FXStreet

By FXStreet FXStreet (Córdoba) – Asian shares closed generally higher on Monday, supported by firmer oil prices at the weekly opening, and taking a lead from Friday’s advance in European and American equities.

The Nikkei 225 closed 0.90% up at 17,110.91 helped by a softer yen, and by the possibility of additional stimulus from the BOJ in its upcoming economic policy meeting. The index however, retreated below the 17,000 level in electronic trading as stocks fell in Europe and US.

Nikkei technical view

“The daily chart shows that the technical indicators have resumed their declines within bearish territory following an upward corrective movement while the index remains far below its moving averages, all of which maintains the risk towards the downside”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, the downside remains limited, given that the Momentum indicator continues heading north well above its 100 level, while the RSI indicator hovers around 54 and the 20 SMA retains a mild bullish tone around 16,635”.

Support levels: 16,892 16,882 16,805. Resistance levels: 17,086 17,197 17,272.
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Source:: FX Street