Moreover, the weakness in oil market also impacted the Nikkei 225 as Japan is vulnerable to energy imports. But the quick decline in stocks such as SoftBank and the lack of breadth indicate that the Nikkei will likely require additional support from tech stocks, Wall Street rallies and the stable yen to get back on a positive trajectory.
Nikkei 225 Correction Sets Up Next Surge
The short term outlook for the Nikkei 225 shows that the index has corrected toward the support line near 67,000. The index is now consolidating in search of support.
A break below 67,000 will push the index toward 66,200 where the previous V-shaped pattern occurred. Once this correction is over, the index will likely trend higher. But the more important support remains at 63,800, which marks the short term support.
AloJapan.com