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May 29, 2023
30,916 is where the Nikkei ended Friday; it reached a record high of 31,560 today, changed by 326.89 points and closed at 31,234.
Although Nikkei is appreciating today after rising as high as 31,560, price action is now slowing and consolidating around 419.05 points below the 31,653 resistance level. 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 31,721, thereby suggesting that the Nikkei is becoming overvalued.
Technical analysis suggests there could be an imminent reversal for the Nikkei.
Other markets are also showing gains as Nasdaq rises 2.19% today and closed at 12,700. ASX 200 is trading around 7,217.4 after ending today's session at 7,154.8 (up 0.87% today). Notably, S&P 500 rose 1.3% today and closed at 4,151.28.
Elsewhere, as things stand, upcoming Japan Industrial Production data is projected to fall short of market expectations with newly published data of 0.5%, following on from the preceding figure of 1.1%. New data is set to be published tomorrow at 23:50 UTC. Japan Retail Sales projected to come out at 5.8% — worse than previous data of 7.2%; data will be released tomorrow at 23:50 UTC. Japan Jobs/applications ratio (Apr) scheduled to come out today at 23:30 UTC.
The index has been trending positively for about a month. Having soared to a high of 31,339 approximately a day ago, the Nikkei is now trading 1.35% lower.
