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April 29, 2023
Trading is currently halted for Showa Day but will resume Monday. Meanwhile, here is a recap of yesterday: the Nikkei rallied 398.76 points (1.4%) deep into the session, closing at 28,856.
At the same time, Japan CFTC JPY speculative net positions released yesterday at 20:30 UTC with a figure of -68,700, while the previous figure was -56,900. Japan Interest Rate came out at -0.1, while a consensus of analysts was expecting -0.1.
Despite posting gains on yesterday, Nikkei slid below its 5 day Simple Moving Average at 28,624 during the last session — an early indicator that a negative trend could be emerging. Bollinger Band® analysis indicates that current price action is approaching the upper band at 29,100, thereby suggesting that the Nikkei is becoming overvalued. The Nikkei could be slowing down soon as it approaches resistance at 28,920. Of course, crossing it might suggest further gains are ahead.
After posting consistent gains as part of its uptrend and being lifted by intraday sentiment, technical factors suggest the Nikkei is set for a reversal in the coming days.
Other markets are also showing gains as Dow Jones went up by 0.8% yesterday, and closed at 34,100. FTSE went up by 0.5% yesterday, and closed at 7,870.57. S&P 500 went up by 0.83% yesterday, and closed at 4,169.48.
The Nikkei hit a significant low of 15.42 around 7 months ago, but has since recovered 184,450%.
