Binary NIKKEI225 undergoes a correction after having advanced about 1000 points. The binary index lost steam. It is a normal reaction to such a steep rise. Binary traders who have bought cheap start closing their positions considering the binary options to be expensive already. The index is trading just above a significant resistance currently.
Binary options on NIKKEI225 have experienced a lack of strength and binary call option buyers. The further upside development of the binary index has been limited by the negative economic news. It is possible that the fears about a new recession come true and trim the measures taken to alleviate the pain of the binary indexes. The outlook is still unclear. However, the economy is far from improving. So, the downward pressure is a natural continuation.
Traders are very nervous and each news has a deep impact over their psychology. They are ready to start buying put options without hesitating, should some negative event or information is released. The downside pressure will continue until the aforementioned behavior is intact.
The binary NIKKEI is locked in an upside channel currently. Binaries are trading at 8855 points hovering just above the support drawn from 8200 points through 8650 points. Should the support withstands, the binary options would retest 9130 points. It represents 50% of retracement from the wave 9690 points to 8200 points.
The index could face an extended selling pressure and break much lower. Potential downside targets are 8600 points, followed by 8400 points.
Disclaimer:
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.
