Nikkei 225 futures: Huge bearish outside day

FXstreet.com (Bali) - The Nikkei 225 futures are down by over 1.5% as Thursday's risk-of profile sent Yen soaring while dragging stock lower.

The technical picture the Nikkei 225 futures presents is quite ugly, as price currently sits more than 500 points - 15,420 - from Thursday's early Asian highs of 15,950, after touching a 2014 low of 15,300.

The underlying uptrend is still dominant from a daily perspective, with a thick ichimoku cloud still suggesting plenty of support on dips. The next downside target for the index comes at 15,200 - top daily cloud - followed by 15,050/15,000 - static support early Dec 2013/round number -.

On the upside, if a recovery in sentiment takes effect, there is potential room for a run towards 15,600, where increase in selling interest should make it more challenging for the index to keep rising.

Flash: Seasonals favour USD/JPY in Q1 2014 - TDS

There is still plenty of fundamental support for a higher USD versus the JPY in the coming months, notes Shaun Osborne, Chief FX Strategist at TD Securities.
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The breakdown of the relationship between the euro and the S&P 500 should raise a yellow flag for Europeans investing in the US, notes Marc Chandler, Head of FX at BBH.
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