Nikkei overall bullish tone prevails – FXStreet

FXStreet (Córdoba) – The Japanese benchmark, the Nikkei 225, lost 77 points or 0.39% on Wednesday, closing the day at 19.847.58, its first negative close in over a week.

The index was hit by some increasing risk aversion and a stronger Japanese yen, albeit the index later recovered the ground lost in electronic trading. The index points to start the day above the 19,900 level, and whilst volumes are expected to be low during the upcoming sessions, the overall bullish tone prevails.

Nikkei technical perspective

“Daily basis, the index has held well above its 100 and 200 SMAs, while the 20 SMA crossed above the larger ones and maintains a strong upward slope. In the same chart, the technical indicators are flat near overbought territory, rather reflecting the ongoing consolidation than suggesting a bearish move ahead”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, a neutral stance prevails as the index continued hovering back and forth around a horizontal 20 SMA whilst the technical indicators head nowhere around their mid-lines”.

Support levels: 19,820 19,763 19,685. Resistance levels: 19,942 20,038 20,100.

The Japanese benchmark, the Nikkei 225, lost 77 points or 0.39% on Wednesday, closing the day at 19.847.58, its first negative close in over a week.

(Market News Provided by FXstreet)