Nikkei 225 collapses back to 21,000 as risk aversion swoons Tokyo markets
- The Nikkei gives back Wednesday's gains, declining into the 21,000.00 major handle.
- Japan's macro figures are middling, which is pairing poorly with the Japanese Parliament's ongoing document forgery scandal.
The Nikkei 225 is declining in the Tokyo market session after climbing steadily in Wednesday's action to the 21,320.00 region, and the major index is falling back into 21,000.00.
Risk aversion is striking back into the Asia markets coming to the end of the Nikkei's active trading day, and the major index is sinking once again. Japanese Large Retailers' Sales for February increased by 0.6 percent over the forecast 0.5 percent decline, but year-on-year Retail Trade figures for February came in at 1.6 percent under the 1.7 percent forecast, but still better than the 1.5 percent previous readings.
Late Thursday at 23:30 GMT Japan sees the Tokyo CPI figures which is expected at 0.9 percent, in line with the previous period's reading. The Japanse government is still struggling under the weight of the recent government land sale scandal, and testimonies from key players within the Japanese Finance Ministry are testifying before the Japanese Parliament, and a growing lack of confidence in Prime Minister Shinzo Abe is growing as he and his government are accused of cronyism and document forging.
Nikkei 225 Levels to consider
This week's bearish momentum is running into higher lows, providing support from swing points at 20,700.00, and further support from the week's opening price at 20,320.00, while bullish momentum is being capped by barriers at this week's swing highs at 21,300.00, with major resistance at the 200-day SMA 21,650.00.
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
