After their three-week rally, equity markets are taking a break. For the S&P 500 and Nasdaq, this has meant simply staying flat. The Nikkei, however, is struggling.
Nikkei on the Daily Timeframe
Having lost the former ATH at 60,930, the immediate next downward target is now the psychological 60K level, consisting of four separate old highs. If that were to fail to hold, the next downward target is located at 57,800-58,400.
Nikkei on the 1-hour Timeframe
To see a reversal, you need to first see the price put a halt to this clear downtrend with consistently lower lows and lower highs. Until that point, catching a bottom will be especially difficult.