Nikkei 225 slips toward key 50-DMA support – Société Générale
Source Fxstreet
Nikkei 225 has retreated from strong resistance at 52,600pts, forming lower highs and lows on the daily chart. The index is drifting toward its multi-month rising trend line, with the 50-DMA near 47,600pts acting as key support. A failure to hold this level may open the way toward the next downside target at the 45,700pts gap, Société Générale's FX analysts note, Société Générale's FX analysts note.
Lower highs signal weakness in Nikkei 225
"Nikkei 225 encountered strong resistance near 52600pts earlier this month and has formed a series of lower peaks and troughs in daily timeframe chart. It is gradually drifting towards a multi-month ascending trend line; the 50-DMA at 47600pts could be a short-term support. It will be interesting to see if the index stages a bounce after testing this moving average."
"Inability to defend 47600pts may denote risk of a deeper decline. In such a scenario, the next objective could be located at previous up gap near 45700pts."
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant.
The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year.
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Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
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