Nikkei down 6% on the day, heading towards 21,000.00
- Nikkei down 6% for the day, still has room to run.
- Global risk aversion taking its toll on equities indexes in all major markets.
The Nikkei has tumbled 6% on the day in Tokyo trading, risk aversion sending global equities sinking. the Nikkei 225 Index is currently trading near 21,100.00, with price accelerating into losses.
The Nikkei Index is yet one more equities index to fall into the risk trap that began last Friday, with inflation fears sparking traders to run for the hills, piling into safe havens like the Japanese Yen as global economic growth brings the risk of interest rate increases home to roost; central bankers around the world are eager to begin tapering their various respective easing programs, and equities have been so flush with excess cash for so long that blowouts from reduced easing are inevitable, regardless of how slow and low central banks taper off their purchasing programs.
Nikkei Technicals
The Nikkei is in freefall today, and has already cleared today's pivot points off the board. A bullish retracement will meet intraday swing resistance at 21,550.00, with 22,430.00 just above that. Price is currently trading into three-month lows, and a continuation of the bearish selloff will have plenty of room to run between here and the enxt major swing support at 20,220.00.
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.
