Nikkei loses upward potential amid caution ahead of BoJ decision

By FXStreet FXStreet (Córdoba) – The Japanese Nikkei posted a tepid advance, surging 32 points and closing the day at 18,935.71 on Thursday. The index started the day with a strong footing following Wall Street’s previous advance, but the rally faded as the session developed, as investors turned cautious ahead of the upcoming BOJ decision.

Nikkei technical perspective

“The index stands a few points below the mentioned close ahead of the opening, and the daily chart shows that the upward momentum seen over the last couple of weeks is losing strength, as the technical indicators continue heading lower above their mid-lines, albeit the 20 SMA maintains a strong bullish slope below the current level”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the index is currently hovering around a horizontal 20 SMA, while the technical indicators hold slightly above their mid-lines, but showing no directional strength. The index can soar if the BOJ decides to expand its stimulus, yet an on-hold stance will likely trigger some profit taking, and send the index below the weekly low of 18,732”.

Support levels: 18,867 18,805 18,732. Resistance levels: 18,942 19,022 19,075.
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Source:: FX Street