• Nikkei 225 broke support zone
• Likely to fall to support level 27550.00
Nikkei 225 index recently broke the combined support zone lying between the powerful support level 28550.00 (which has been reversing the price from the start of March) and the 50% Fibonacci correction of the previous upward price impulse form the middle of December. The breakout of this support zone accelerated the previous impulse waves 3 and (C).
Given the deterioration of the risk sentiment seen across the equity markets today and considering the proximity of the aforementioned price zone – acting as resistance now – Nikkei 225 index can be expected to fall further toward the next support level 27550.00 (low of the previous correction 2 from the end of January).