Nikkei 225 Consolidates at Yearly Highs

Asian indices ended mixed today as investors closely follow the developments around the Brexit agreement. Confusing headlines over trade deal between China and the USA weigh on investors sentiment. The Hang Seng index finished 0.55% lower at 26,706, the Shanghai Composite ended 1.32% lower at 2,938, while the Singapore Straits Times is 0.37% lower at 3,11. Aussie stocks also finished lower; the ASX 200 ended 0.52% lower at 6,649.

Nikkei 225 finished 0.18% higher at 22,492 as the index consolidates around yearly highs after encouraging earnings from USA. Data from China disappointed investors as Gross Domestic Product (YoY) below came in at 6% below expectations of 6.1% in 3Q, for the quarter China Gross Domestic Product came in at 1.5% in line with forecasts. Nikkei boosted by Pacific Metals +9.10%, SCREEN Holdings +7.89%, Ebara Corp. +4.65, and Rakuten Inc. +2.43%.

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Nikkei Support and Resistance

The Nikkei index consolidates close to YTD highs, as the full bullish momentum is intact and the index holds above all major daily moving averages. Today the index made fresh YTD highs but finished the day below the highs, as the RSI (14) index is approaching overbought levels. On the upside resistance for the Nikkei 225 stands at 22,649 today’s high, a break above, will set the stage for a move up to 22,700 the high from December 3, 2018. On the downside, immediate support stands at 22,466, today’s low and then at 21,284 the 100-day moving average.

In Asian forex markets USDJPY trading 0.01% lower at 108.73 the Aussie dollar trades 0.16% higher at 0.6834, while NZDUSD trades 0.38% higher at 0.6370 versus USD. Gold trades lower today at 1,4870, while WTI crude oil is 0.32 higher at $54.10 per barrel.

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