Nikkei sliding down after paring back losses from recent panic selling in equities. Examine the 7 February NIKKEI Technical Outlook for more.
7 February, GKFX – Japan’s Nikkei 225 leading index is dropping today during Tokyo trading, back down to the 21,750 region as US futures slip lower in anxious markets.
The Nikkei tumbled from multi-year highs recently as equities plunged and bond yields spiked following a brisk round of risk aversion in markets, with traders fleeing into safe-haven assets late last week and early this week. Market risk appetite seems to have normalized, seeing the Nikkei bounce from a low of 21,065 back up to 22,370 but is currently sinking again in Asia markets.
7 February NIKKEI Technical Outlook
The index is trading very close to swing support at 21,750, with bullish price movements being capped at 21,980, and 22,366 above that. Longer term, the Nikkei will have to clear the latest turning point resting at 22,350, and if that fails, the index could see itself trading back into 21,560 very soon.
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