Nikkei retains a short-term bullish tone – FXStreet

By FXStreet FXStreet (Córdoba) – The Nikkei 225 added 496 points or 2.61% this Wednesday, closing the day at 19,049.91, its biggest one-day rally in over two months. The rally came after a strong advance in European and American stocks, which followed the recovery in oil prices.

Markets sentiment was high ahead of the FED’s announcement, and afterwards, the index rallied further, now poised to open around 19,350.

The Federal Reserve raised the target range for federal funds to 0.25%-0.50% as widely expected and said further increases will be gradual. Yellen reiterated yet again that the policy will remain accommodative and will depend on incoming economic data.

Nikkei technical perspective

“The daily chart shows that the index advanced strongly above the 100 DMA, while the 20 and 200 DMAs converge at 19,530, while the technical indicators head strongly higher, with the RSI anticipating some further advances, crossing its mid-line towards the upside”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index gaped higher far above a now bullish 20 SMA, while the technical indicators are partially losing their strength near overbought levels, but remain overall bullish.”

Support levels: 19,280 19,207 19,132. Resistance levels: 19,397 19,530 19,620.
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Source:: FX Street