The Nikkei is consolidating around the 27,855 level after dropping 173.24 points at the start of the trading session.
Amid the market gloom, Japan Industrial Production published yesterday at 23:50 UTC came out at -2.6%, falling short of the -1.5% projections and continuing its decline from the previous -1.7% figure.
Trend-focused traders would be interested to note that Nikkei made an initial break below its 21 day Simple Moving Average at 27,882, a possible indication of a forthcoming negative trend. Analysis based on the asset volatility indicates that Bollinger Bands® shows an indication of recovery: the lower band is at 27,347, a low enough level to, generally, suggest that the Nikkei is trading below its fair value. Chart analysis indicates the Nikkei could begin to recover as it approaches significant support, now 15.95 points away from 27,839. Dipping below could be an indication that further losses are ahead.
With market volatility ebbing, the current technical outlook indicates the Nikkei will remain range-bound for the immediate future.
Positive performances can be seen by looking at other markets as having closed the previous session at 7,474, FTSE is up 0.51% today to currently trade at around 7,512. Having closed the previous session at 7,253.3, ASX 200 is up 0.41% today to currently trade at around 7,283.2. Hang Seng increases 0.79% to trade around 18,348.
Furthermore, Japan Capital Spending (YoY) (Q3) is expected today at 23:50 UTC. Japan 10-Year JGB Auction is scheduled for tomorrow at 03:35 UTC. Japan BoJ Board Member Noguchi speech will be released tomorrow at 01:30 UTC.
The index has been trending positively for about a month. The Nikkei hit a significant low of 15.42 around 2 months ago, but has since recovered 181,663%.