Nikkei technicals support further gains – FXStreet

By FXStreet The Nikkei 225 soared at the beginning of the day, rising by a whopping 7.16% to end the day at 16,022.58, 1,146 points above its previous close. The index rallied on a weaker yen, as the local currency plummeted following much-worse than expected GDP data, showing that the Japanese economy shrank 1.4% in the last quarter of 2015, on an annual basis.

After posting its second biggest one-day gain in three years, the index retreated partially, trading below the 16,000 level ahead of the Asian opening.

Nikkei technical view

“The daily chart supports some further gains, as the technical indicators are extending their advance from oversold territory, although they are still within bearish territory, while the 20 SMA heads south far above the current level, meaning is no time to talk about a longer term recovery”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical bias is bullish, with the index rallying above a now horizontal 20 SMA and the technical indicators maintaining their bullish slopes within positive territory”.

Support levels: 15,944 15,810 15,727. Resistance levels: 16,032 16,154 16,238.
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Source:: FX Street