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Nikkei 225 Ends Lower, But away from the Intraday 2-week Lows

Nikkei 225 Ends Higher
Nikkei 225 Ends Higher

Nikkei and Asian equities ended lower today as political drama in Washington weighs on stocks. Investors await the developments in trade negotiations between China and US which are scheduled to start in early October. The Hang Seng trading 0.37 per cent lower at 25,951, the Singapore Straits Times index finished 0.16 per cent lower at 3,121, and the Shanghai composite ended 0,11 per cent higher at 2,932. Aussie stocks finished higher; the ASX 200 ended 0.58% higher at 6,716.

Nikkei 225 finished 0.77% lower at 21,878 after the Tokyo inflation data shows that Headline CPI came in at 0.4% y/y below forecasts of  0.5% for September. During the session the index made fresh 2-week lows at 21,733.

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Nikkei Technical Analysis

The Nikkei made fresh –week lows today but managed to rebound before the ringing bell. The RSI (14) index exit the overbought area with today’s correction and now stands at 63.64. On the downside immediate support stands at 21,733, today’s low and then at 21,210 the 100-day moving average. A break below that level might accelerate the selloff down to 21,164 and the 200-day moving average. On the flipside resistance for the benchmark Nikkei 225 stands at 21,955 today’s high, a break above, perhaps will set the stage for a move up to 22,180 the high from May 7th, which will open the way for a move up to yearly highs.

In Asian forex markets USDJPY trading 0.03% higher at 107.86, the Aussie dollar trades 0,18% higher at 0.6760, while NZDUSD trades 0.5% lower at 0.6293 versus USD. Gold trades lower today at 1,498, while WTI crude oil is 0.09% lower at $56.36 per barrel.Download our latest quarterly market outlook for our longer-term trade ideas.

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