Nikkei up cautiously in the new week, following accelerated declines from record highs
- Nikkei looking for a positive week following recent declines.
- Back up from the recent low of 20,565.00.
The Nikkei 225 Index is looking to make up lost ground, trading up into 21,600.00 in Tokyo markets following three weeks of accelerating declines from a recent high of 24,200.00 less than a month ago.
Inflation fears were stoked recently as markets made the connection between improving economic indicators and rising interest rates, and equities suffered severe shakedowns as traders pulled record amounts of cash out of indexes and risk assets, piling into safe havens as central banks around the world prepare to start ending the decade-long easy monetary environment that has been the hallmark of low growth rates globally.
The Nikkei is bouncing back from its recent lows as markets restabilize in the face of rising interest rates, and is tracking a similar recovery to other equity indexes, notably the S&P 500 from the US.
Nikkei 225 Technicals
Intraday traders will note a trio of resistance levels blocking the path to higher prices today, from the 22,000.00 psychological level up to 22,170.00, with 22,330.00 just beyond. Bearish action will be limited by support at 21,370.00, with 21,106.00 acting as major support if the intraday levels can't hold.
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.
