Nikkei: Technicals support further advances

By FXStreet FXStreet (Córdoba) – The Japanese benchmark, the Nikkei 225, advanced 28 points and closed Tuesday at 19.671.26, erasing all of its pre-opening losses as investors are still in the buy-the-dips mood, particularly as the yen remains weak against most of its major rivals.

The lack of fresh news to trigger some market action, had not been enough to prevent the index from establishing a fresh high of 19,752 at the beginning of the day.

Nikkei technical view

“Now and ahead of the Asian session opening, the daily chart presents a strong upward potential, as the index has extended further above its moving averages after bouncing holding above the 200 DMA on retracements, whilst the RSI indicator heads higher around 67, supporting further advances”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the index is hovering near the highs, and well above a bullish 20 SMA, while the technical indicators are beginning to look exhausted towards the upside near overbought levels, but are still unable to confirm a bearish corrective move”.

The analysts sees supports at 19,615, 19,527 and 19,440, while she locates resistances at 19,752, 19,830 and 19,926.
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Source:: FX Street