Asian stocks managed to rebound today as the monetary and fiscal stimulus by central banks and governments around the globe ease investors worries about the impact of the coronavirus impact on the business and economy. Meanwhile the flattening of the trajectory for the virus in Europe also supports sentiment. Now there are 380,000 confirmed coronavirus cases around the globe while the death toll rises to 16,500.
The Japan Manufacturing PMI came in at 44.8 well below the expectations of 47.6 in March. The Japan Leading Economic Index came in at 90.5 topping the expectations of 90.3 in January, while the Coincident Index came in at 95.2 beating the expectations of 94.7 in January.
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Nikkei 225 Technical Analysis
The Nikkei 225 index finished today 7.13% higher at 18092 making fresh six days highs. The index has lost over 32% since the 2020 high in February amid the coronavirus crisis. Technically Nikkei bearish momentum is intact, and the recent bounce might be just a dead cat jump. A move above the 19,000 mark might cancel the downward trend and attract some buyers.
Resistance for Nikkei 225 will be met at 19,120 the high from March 12th. The next hurdle to the upside stands at 20013 the high from March 11th. In case of a bullish breakout the next supply zone is at 20374 the high from March 9th.
On the other side, immediate support stands at 17,197 today’s low, if the index slips below that level, might drive prices down to 16,458 low from yesterday’s trading session.
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