Nikkei extends advance with 20,000 level coming in sight

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - The Nikkei 225 advanced 126 points or 0.6% and closed the day at 18,903.02, boosted by renewed hopes on the BOJ adding stimulus next Friday.

    One of Japanese PM Abe advisors, Shibayama, said on Wednesday that it won't be strange for the BOJ to ease further at its upcoming meeting, given that the Fed refrained from rising rates in September. With the Fed on hold, the risk of an excessive slide in the yen was limited, but today’s US Central Bank decision to stand pat may force authorities to rethink their stance.

    Nikkei technical perspective

    “Anyway, the Nikkei extended its advance following Wall Street, and stands above 19,100 ahead of the Asian opening. The technical picture has turned back bullish, as the daily chart shows that the index is nearing last week highs, and well above a bullish 20 SMA, whilst the technical indicators have turned back higher above their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index recovered above its 20 SMA, while the technical indicators are losing their upward strength above their mid-lines. Another leg higher through 19,157, the mentioned high, should lead to a continued advance for this Thursday, with investors now beginning to think on a retest of the 20,000 level”.

    Support levels: 19,068 18,972 18,910. Resistance levels: 19,157 19,225 19,300.
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