Asian indices turned higher today, the Nikkei 225 ended in positive foot helped by weaker Yen and despite traders turn cautious after the expected meeting between US President and Chinese President to sign the phase one trade deal could be delayed until December. Traders await President Donald Trump’s speech later today for fresh clues over phase one of the trade deal between China and US. The Hang Seng index trades 0.41% higher at 27,037; the Shanghai Composite is 0.10% higher at 2,912. Australian stocks ended lower; the ASX 200 finished 0.29% lower at 6,753.
Nikkei 225 finished 0.81% higher at 23,520 close to yearly highs as risk appetite returns to markets and despite the Japan Machine Tool Orders (year over year) fell from previous -35.5% to -37.4% in October. The Japan Money Supply M2+CD (year over year) came in at 2.5% below forecasts of 2.6% in October. Bank of Japan the previous week kept its monetary policy steady as expected.
Nikkei 225 Technical Analysis Levels
The Nikkei index finished close to yearly highs today as the bullish momentum on global equities persists holding above all major daily moving averages. Longs should closely watch the daily RSI index, which hovers at 77.28, an overbought level that might trigger profit-taking.
On the upside, first resistance for the Nikkei benchmark stands at 23,545 today’s high, a break above will open the way for a move up to 23,591 yearly high, the next resistance comes at 24,310 high from on October 1st, 2018.
On the downside, first support stands at 23,312.3, today’s low, a break below might drive prices down to 22,625 the previous resistance that now has turned into support while a breach of that level might refuel the bears and target the major support at 22,450 the low from October 23.
In Asian forex markets, USDJPY pair trading 0.19% higher at 109.25 the Aussie dollar trades 0.07% higher at 0.6855, while NZDUSD trades 0.37% lower at 0.6335 versus US Dollar. Gold trades lower around $1,451, while WTI crude oil is 0.38% higher at $57.08 per barrel.