Nikkei 225 – Range Support Holds, Breakout on Hold (4hr chart)
Earlier this week we noted the potential pre-breakout scenario on the Nikkei forming. That didn’t happen, and shortly after, the PBOC intervened, weakening the Yuan vs. the USD.
Needless to say the Nikkei sold off heavily but has held the key range support we noted prior at 20045 (low was 20049). For now, the range structure is still in play, so unless we get some heavy downside pressure, this range support should attract some bids.
If it holds, then a revisit of 20450/500 is in order with a potential move back up just shy of 20900. However a daily close below the range support really opens up the downside …... Keep reading