The Nikkei 225 extended its sharp decline, falling below the 200-day moving average at one point on a closing-price basis and also breaking below the 29 July low, intensifying downward pressure.
The Nikkei 225 fell sharply. After the round of buybacks ran its course, the index lost momentum early, leading to intensifying downward pressure. It closed below the 200-day moving average, and the search for a downside level continues.
The 200-day moving average, a key indicator over the same period, was ¥61,936 as of 11/5, and the index fell below it. Breaking below the 7/29 low of ¥61,434 has also led to a more negative outlook.
While attention is focused on the twist in the Ichimoku Cloud as a potential future guide, the 5-day and 10-day moving averages are likely to be viewed as overhead resistance. In addition to the psychological milestones of ¥64,000 and ¥65,000, the 75-day moving average in the ¥63,9?? range is another potential upside target.