The Nikkei 225 is still in a bear market and could drop toward 8,000 points if it falls below a support level at 9,000 points, Roelof van den Akker, chartist at from ING Wholesale Banking, told CNBC Tuesday.
“We could see a fall below horizontal support at 9,000 and then we could easily see another 1,000-point drop in prices to 8,000,” Akker said.
“That’s still above the lows of this year, of around 7,000. To my opinion we are closer to a test of the 7,000 level as a break above 10,000,” he added.
The Japanese index is clearly in a bear market having tested a long-term falling trend line that started back in late 2007, according to Akker.
Akker also takes a technical look at the euro versus the yen. Watch the video above for the full interview.
For the Investor: