Nikkei 225 at Fresh One-Year High Ahead of FOMC

·Oct 28, 2019, 08:11 GMT

Nikkei and Asian indices gain further ground today sending equities to three-month highs as risk appetite returns on US-China trade deal hopes for signing a deal in November, and better U.S. Q3 earnings results. The Hang Seng index trades 0.88% higher at 26,902; the Shanghai Composite is 0.85% higher at 2,980. Aussie stocks finished higher for sixth consecutive session; the ASX 200 ended at 6,740.

Nikkei 225 finished 0.30% higher at 22,867 making fresh yearly high for the third trading session. Last week Moody’s affirmed Japan the A1 rating with a stable outlook. Nikkei boosted by Sumco Corp. +5.33%, Minebea Mitsumi Inc. +4.53%, Advantest Corp. +3.80%, and SCREEN Holdings Co. Ltd. +3.08%.

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Nikkei 225 Resistance and Support

The Nikkei index continues step by step to fresh YTD high, as the positive momentum is intact and Nikkei 225 trading above the major daily moving averages. A warning signal for longs might be that the RSI index has reached 75.05 on the daily chart an overought level that might gather some profit-taking.

InvestingCube's S&R Levels

NAS100 (11583.1)

Not in Buy Zone

STOP

BUY

TP1

11950

TP2

12095

On the upside first hurdle for the Nikkei stands at 22,896 today’s top, a break above, will set the stage for a move up to 22,950 the high from October 15th, 2018, above this level, the next resistance comes in at the highs seen on October 8, 2018. On the downside, immediate support stands at 22,830.6, today’s low and then at 22.643 the previous YTD high, a convincing break below might drive prices down to 21,491 the 50-day moving average.

In Asian fx markets, USDJPY trading 0.06% higher at 108.3 the Aussie dollar trades 0.03% lower at 0.6818, while NZDUSD trades 0.02% lower at 0.6346 versus US Dollar. Gold trades slightly higher today at 1,505, while WTI crude oil is 0.7 lower at $56.45 per barrel.

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