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June 07, 2023Having ended yesterday at 32,500, the Nikkei came to a record high of 32,700 today. Later, it lost 800 points and closed at 31,900.
Japan GDP data will be released today at 23:50 UTC, with an expected improvement to 0.4. the Nikkei reaction to indicator information will follow.
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. Price action remains constrained around the key Fibonacci level of 32,500 currently serving as support. If price action breaks below, the next Fib hurdle is 30,584. The Nikkei's upper Bollinger Band® is at 32,252 which indicates a further downward move may follow. On the other hand, note that the Nikkei could begin to recover as it approaches significant support, now 201.87 points away from 32,100. Dipping below could be an indication that further losses are ahead.
Overall, looking at the technical analysis landscape, it seems that although indicators are mixed and some are pointing in different directions further drawbacks may be next for the Nikkei.
In the meantime, negative performances are also seen in other markets, after ending today's session at 13,276, Nasdaq lost 176.42 points and is trading around 13,100. After ending today's session at 4,284, S&P 500 lost 16.48 points and is trading around 4,267.52.
Positive performances can be seen by looking at other markets as Hang Seng moves up 0.8% today and closed at 19,100.
In addition, Japan GDP is projected to outperform its last figure with 0.4. It previously stood at zero; data will be released today at 23:50 UTC.
Furthermore, Japan Current Account n.s.a. (Apr) is scheduled for today at 23:50 UTC. Japan GDP (YoY) (Q1) scheduled to come out today at 23:50 UTC. Japan Adjusted Current Account (Apr) is expected today at 23:50 UTC.
The index has been trending positively for about 2 months. The Nikkei hit a significant low of 15.42 around 8 months ago, but has since recovered 210,700%.
