Nikkei losing upward potential – FXStreet

By FXStreet Asian shares continued to advance on Thursday following the positive lead from Wall Street, with the Nikkei adding 546 points or 3.23% to close the day at 16,911.05.

The yen remained weak, underpinning the rally in local share markets, also supported by comments from BoJ’s Governor Kuroda, who repeated that the Central Bank won’t hesitate to take further easing measures to boost the economy. The benchmark retreated in after-hours trading as European and American indexes closed mostly flat.

Nikkei technical perspective

“Daily basis the index advanced further above the 20 SMA, while the Momentum indicator lost upward potential below the 100 level. The RSI stands around 55, but is partially losing its upward strength, still unable to suggest a steeper continuation for this Friday,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the Momentum indicator turned lower from extreme overbought readings, but the RSI indicator holds flat around 73, as the index holds well above a sharply bullish 20 SMA, implying limited selling interest around the current level.”

Support levels: 16,690 16,605 16,525. Resistance levels: 16,830 16,903 16,985.
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Source:: FX Street