Nikkei technicals turned neutral

FXStreet (Córdoba) – The Japanese Nikkei closed Wednesday at 18,926.91, up by 246 points or 1.30%, supported by the preceding Wall Street’s advance and a general positive mood among investors. The index also jumped on one of the largest IPO of this year from the Japan Post companies.

Group parent company Japan Post Holdings Co. closed 20% higher than the initial public offering price, while Japan Post Bank Co. rose 15% and Japan Post Insurance Co. surged 56% from its IPO price.

The index extended its rally after the close, following more gains from US indexes, and stands above the 19,000 level ahead of the opening, having flirted with the highs around 19,170 in after hours trading.

Nikkei technical perspective

“Technically, the daily chart shows that the index remains within its latest range, above its 20 DMA but below the 100 and 200 DMAs, whilst the technical indicators lack directional strength in positive territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is above a horizontal 20 SMA while the technical indicators have turned south, but hold above their mid-lines, giving no clues on what’s next for the index”.

Support levels: 18,990 18,912 18,820. Resistance levels: 19,110 19,170 19,245.

The Japanese Nikkei closed Wednesday at 18,926.91, up by 246 points or 1.30%, supported by the preceding Wall Street’s advance and a general positive mood among investors. The index also jumped on one of the largest IPO of this year from the Japan Post companies.

(Market News Provided by FXstreet)