Nikkei: technical picture is quite bullish – FXStreet

By FXStreet The Nikkei 225 closed with a modest gain of 58 points at 18,085.51 on Tuesday, although in after hours trading, the index added over 500 points, currently around 16,580 ahead of the Asian opening.

The index erased its early losses as sentiment improved in spite of poor manufacturing data, most likely as commodities maintain the positive tone seen by the end of the past week. The strong recovery in futures trading, was led by yen weakness, as the currency shed almost 200 pips against its American rival.

Nikkei technical view

“The technical picture is quite bullish, as in the daily chart the index is currently at fresh 3-week high and above a bearish 20 SMA, while the technical indicators head sharply higher within positive territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is a handful of points above the 200 SMA for the first time this year, while the 20 SMA continues advancing below the current price. The technical indicators in this last time frame, however, lack directional strength within positive territory.”

Support levels: 16,452 16,320 16,245. Resistance levels: 16,604 16,695 16,780.
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Source:: FX Street