Nikkei 225 Technical Analysis: Support Firm,Consolidation Needed

Nikkei 225 Technical Analysis Talking Points:

  • The Nikkei 225 is near 8-month peaks
  • Beyond them this year’s ten-year highs beckon again
  • However some base building may be needed if they’re to break sustainably

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The Nikkei 225 has pushed on to new, eight month-peaks despite the fundamental backdrop of global trade friction from which Japan would hardly seem immune on any count.

Still, US equity’s vigor has been contagious, while a weaker Japanese Yen has boosted the allure of local stocks to overseas investors.

So much for the fundamentals. Technically the Tokyo stock benchmark has risen sharply above even the strong, prevalent uptrend line which has been in place since the lows of May. Thanks to the soaring gains seen since September 12, that line is now fully 1,500 points below current market levels.

The bulls clearly have theirs sights set once again on the year’s peaks. They were made in January, in the 24,200 region, which is once again within

Article source: https://www.dailyfx.com/forex/technical/home/analysis/jpn225/2018/09/27/Nikkei-225-Technical-Analysis-Support-Firm-Consolidation-Needed.html