Nikkei may face some pressure – FXStreet

By FXStreet FXStreet (Córdoba) – The Nikkei 225 continued rallying, climbing 1.98%, or 353 points, to 17,865.23 on Monday, as local investors are still cheering BOJ’s decision of cutting rates.

Several solid earnings reports also supported the Japanese benchmark, with Sony Corp. up 12.41% after the company said its fiscal third-quarter net profit rose 22.5% from a year earlier. In after-hours trading, however, the index retreated, tracking small losses in European indexes and lackluster action in American indexes.

Nikkei technical perspective

“From a technical point of view, the daily chart shows that the index is now above its 20 SMA, while the technical indicators have lost upward strength, but hold above their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index remains well above a bullish 20 SMA, while the technical indicators lack directional strength near overbought territory. The index may come under some pressure this Tuesday, with a break below the daily low, set at 17,597, probably fueling a decline by spurring risk aversion”.

Support levels: 17,742 17,687 17,597 Resistance levels: 17,837 17,960 18,075.
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Source:: FX Street