Brief: Nikkei 225 March to ¥27,000 Stalls – But There’s Still Hope
The Nikkei 225is in its second consecutive day in the green as traders react to the dovish Fed statement and the recent haul by NTT. The index, which is made up of the biggest companies in Japan, is trading at ¥26,806, which is relatively higher than this week’s low of ¥26,670. Other Asian indices like the Hang Seng and ASX 200 are also in the green.
What happened: There were no major market events in Japan today. Therefore, investors continued to react to the Fed interest rate decision made yesterday and its impact on the market.
In addition, investors continued to watch the Japanese debt market. This is after more companies like Panasonic and Daicel went to the market to borrow money. They are following the footsteps of NTT, which raised more than ¥1 trillion in the bond market this week. That brought the total amount of money raised this month to more than ¥1.5 trillion.
Tomorrow, Panasonic will raise ¥200 billion after it received an A- rating from S&P Global.
Key movers in Nikkei 225 today: The best-performers in the blue-chip Japan index are Fujitsu, Mitsubishi Materials, Softbank, and NEC. These firms have all jumped by more than 4%. On the other hand, Panasonic shares have fallen by more than 0.75%. The top laggards in the index are Mitsui Engineering, IHI Corp, Mitsubishi Motors, and Isetan.
Nikkei 225 technical outlook
On the four-hour chart, we see that the Nikkei 225 index has been in a consolidation mode in the past few days. It has failed to break above the important resistance level of ¥26,909, which is the highest it has been since 1991. Also, the index has formed an ascending triangle pattern and is also slightly above the 25-day and 15-day exponential moving averages.
Therefore, the index will ultimately break-out higher in the next few weeks. If it does, the next key level to watch will be ¥27,000.