FTSE plummets after BoJ inaction
The index has seen overnight strength come crashing down with a bang this morning, after inaction from the BoJ dashed hopes of further monetary easing for the time being.
Given that yesterday’s rally failed to regain the 6350 level, we remain within a short-term downtrend, where the key to today’s price action is whether the 6249-6237 support zone will hold. This region between the March high and Mondays lows will need to be broken to bring expectations of further losses.
As such, a closed hourly candle below 6237 would look towards 6163 as the next key support level. Alternately, should this support zone hold once more, we could see the index continue to trade in a relatively choppy manner.