Nikkei Forecast October 8, 2014, Technical Analysis

The Nikkei as you can see had a slightly negative session for Tuesday, as we continue to try to build up enough momentum to go higher. There is a gap just above at the ¥16,000 level, and that area had been resistive in the past. Because of this, we feel that a break above that level sends this market looking for the ¥16,400 level. Above there, this becomes more of a longer-term buy-and-hold type of situation, with the market been supported by the Bank of Japan and the fact that the Japanese yen is going lower and value overall.