Nikkei 225 Technical Analysis: Key Channel Top Lies In Balance

Nikkei 225 Technical Analysis Talking Points:

  • Retracement support from June 2016 has held the bears in check so far
  • However the bulls have yet to really press their case
  • This week’s close could tell us whether they will

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The Nikkei 225 fell very sharply though October, as did many other global indexes, as a wave of trade-inspired risk aversion took its toll.

The Tokyo stock benchmark is now more than 2,500 points below its 2018 peak, which was the 24,441 reached on October 1. However, the point at which its fall has so far halted is an interesting one. The 20,767.6 level reached in intraday trade on October 29 and 26 is just about exactly the second, 28.3% Fibonacci retracement of the rise up to this year’s highs from the lows of June 2016.

Nikkei 225 Technical Analysis: Key Channel Top Lies In Balance

That level has survived two downside tests in the past week and seems to be providing strong support.

Still, the Nikkei remains under near-term

Article source: https://www.dailyfx.com/forex/technical/home/analysis/jpn225/2018/11/01/Nikkei-225-Technical-Analysis-Key-Channel-Top-Lies-In-Balance.html