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June 10, 2023
Yesterday at a glance: after finishing Thursday at 31,641, the Nikkei went up to 32,300 before paring its losses and closing at 32,265.
Meanwhile, Japan CFTC JPY speculative net positions released yesterday at 20:30 UTC with a figure of -104,800, while the previous figure was -96,200.
Nikkei is 135.56 points away from testing key resistance at 32,400. Peaking above this level could inspire market bulls and open the path to further gains. The MACD is significantly above its signal line, which suggests the market is running out of bullish momentum and could revert to a negative outlook as bears regain control. Bollinger Band® analysis indicates that current price action is approaching the upper band at 32,867, thereby suggesting that the Nikkei is becoming overvalued.
Technical analysis of the Nikkei price action suggests it is likely to undergo a short-term reversal amid broader bullish sentiment.
The Nikkei shows positive signs, other assets are also on par: KOSPI Composite Index went up by 1.16% yesterday, and closed at 2,641. ASX 200 added 0.32% and closed around 7,099.7 yesterday.
Meanwhile, FTSE lost 0.49% yesterday and closed at 7,599.74.
The index has been trending positively for about 2 months. The Nikkei is now trading 2.66% below the significant high of 32,500 it set around 4 days ago.
