Nikkei’s advance favored by a weaker yen

By FXStreet The Nikkei advanced 465 points or 2.84% to close Wednesday at 16,381.22, its highest settlement in two weeks, as a weaker yen favored bargain-hunting on recently battered stocks such as automakers and bank shares.

Mitsubishi Financial Group added 4.5% while Mizuho Financial advanced 3.2%. Exporter-oriented shares also benefited, with Toyota, Honda and Panasonic adding over 2.0% each.

The Japanese benchmark advanced further after the close, and is poised to open the new day above 16,600.

Nikkei technical view

“From a technical point of view, the index recovered above its 20 SMA, whilst the technical indicators have extended further their bounces from oversold territory, but are still below their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have turned flat within overbought territory, with no signs of turning lower, whilst the index recovered above all of its moving averages, suggesting the advance may extend further this Thursday.”

Support levels: 16,525 16,439 16,335. Resistance levels: 16,655 16,759 16,840.
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Source:: FX Street