The Japan 225 index shifted gears, losing around 450 points relative to Thursday’s two-and-a-half-week high of 22,579.

The RSI halted its previous advance and reversed lower into bearish territory below 50. This suggests a tilt in short-term momentum towards a bearish direction. The stochastics are also giving a negative signal in the very short-term, as the %K and %D lines recorded a bearish cross.

Steeper losses may meet support around the 22,000 mark that may hold psychological importance; the area around this captures a couple of bottoms from the recent past as well. Lower, 21,654, this being the 23.6% Fibonacci retracement level of the downleg from 24,472 to 20,789, would be eyed for additional support.

- advertisement -

On the upside, resistance could occur around 22,191, the 38.2% Fibonacci point. Higher still, the attention would turn to the zone around the 50% Fibonacci level at 22,628, which also encapsulates the 100-day moving average line, as well as yesterday’s top of 22,579.

The medium-term picture looks predominantly bearish, with trading activity taking below both the 50- and 100-day MAs. Notice though that the two MAs do not maintain a steep negative slope; the outlook is not strongly bearish.

Overall, the short-term bias has tilted to the downside, with the medium-term one looking mostly bearish at the moment.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.