4.21 Trends of the Nikkei Average that fell sharply

Note: This article does not instruct or recommend a trading timing.

Please make your own investment decisions.

The horizontal support line around 29,200 yen, which was a lower-support level, breached to the downside early in Tokyo time.

There has been no sign of a rebound, and selling has continued led by European and New York futures.

Behind this, there is a view that there is strong profit-taking pressure, and it can be said that the response to COVID-19 in major urban areas, where a state of emergency might be declared again, is pessimistic even among foreign investors.

From a broader perspective, it sits within a triangular consolidation, so it could be seen as range-bound turbulence; however, there are few immediate, substantial bullish factors, and even if a good earnings report lifts it, there is a very high likelihood of a return sell-off driven by profit-taking.

If domestic infection control improves rapidly, investor sentiment is expected to improve, but at present there are no signs of this.