Nikkei holds limited upward potential

By FXStreet FXStreet (Córdoba) – The Nikkei 225 declined on Wednesday after the Bank of Japan decided to keep monetary policy unchanged, although the index managed to close the day up 0.75% at 18,322.98, supported by a steady advance in energy-related shares.

On Thursday, Chinese markets will reopen after almost a week closed on holidays, which may put a halt to the ongoing positive mood among stocks investors.

Nikkei technical perspective

“Ahead of Thursday’s opening, the index holds near its close, presenting a limited upward potential in its daily chart, as the technical indicators head turned higher, but remain around their mid-lines, whilst the index continues developing above a horizontal 20 SMA”, says Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA extended its advance below the current price, with buying interest surging on approaches to it, but the Momentum indicator lacks directional strength around its 100 level, whilst the RSI aims higher around 60”.

As for technical levels, Bednarik sees supports at 18,272, 18,197 and 18,090, while she places resistances at 18,367, 18,447 and 18,530.
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Source:: FX Street