Chart of the day: Nikkei heading for the bottom
Following on from our recent look at US dollar-yen, it is interesting to note that it was not until late August that the stock market sold off - in line with global trends and seemingly oblivious to creeping yen strength. Trend line support and the bottom of the Ichimoku cloud came to the rescue, setting off this month's corrective bounce. A temporary relief, we feel, as we are currently capped by the top of the cloud at Fibonacci 38 per cent retracement resistance. While below here, and pressured by the nine-week moving average (18,047), expect a drop through the trend line to the bottom of the cloud (which flattens out soon) - and then some more.