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April 07, 2023
The Nikkei has been losing ground for 3 days, shedding a total of 2.72% of its value. A slight improvement can be seen from today's session: the Nikkei spiked to 27,600 today and consolidated before initiating a fresh rally to 27,518. This comes following yesterday's session in which it closed at 27,473.
The Nikkei's state is reflected by market data as Japan Household Spending (YoY) (Feb) released yesterday at 23:30 UTC with a figure of 1.6, while the previous figure was -0.3. Japan Household Spending (MoM) (Feb) came out at -2.4, while a consensus of analysts was expecting -0.4.
Nikkei is approaching key support, around 121.4 points away from 27,400. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls. The Nikkei's upper Bollinger Band® is at 28,666 and the lower is 27,100. On the other hand, note that the Nikkei made an initial break below its 50 day Simple Moving Average at 27,484, a possible indication of a forthcoming negative trend.
Although price action remains in a stalemate, technical analysis suggests the Nikkei could be primed for a break to the upside.
While the Nikkei was pretty flat today, mixed performances were seen elsewhere as FTSE moves up 1.03% today and closed at 7,663. KOSPI Composite Index went up by 1.27% today, and closed at 2,490.41.
Data to be released Monday might clear up some of the market fog as Japan CFTC JPY speculative net positions is scheduled for today at 20:30 UTC.
After hitting an important low of 15.42 approximately 6 months ago, the Nikkei has bounced back 178,062% since.
