The Nikkei 225 is down 7.3% in the past three sessions, wiping out what had been a strong month for the index. Just like the first swan dive in the index, there hasn’t been a single catalyst. Japanese election results were as expected and Abe surprisingly opened the door to delaying sales tax hikes.
100-day MA next line of support for Nikkei
BAML currency strategists say the index could fall to 12415 or even 11408 and that points to further USD/JPY declines. They target support at 93.65/73.
They also say EUR/JPY could fall to 125.00 or even 118.73/116.00.
