Nikkei 225 ended lower today after Fed delivered the 25 basis points interest rate cut that markets widely expected. The Hang Seng index trades 0.57% higher at 27,060; the Shanghai Composite is 0.99% higher at 2,958. Aussie stocks finished higher; the ASX 200 ended 0.09% higher at 6,669.
Nikkei 225 finished 0.33% lower at 22,850 after the Jibun Bank Manufacturing PMI came in at 48.4 below forecasts of 48.5 in October. Japan Unemployment Rate came in at 2.4% above forecasts of 2.3% in September. The factory activity in China expanded at its fastest pace the last two years as Caixin Manufacturing PMI came in at 51.7, topping expectations of 51 in October.
Bank of Japan kept its monetary policy as expected and changed its forward guidance to more clearly signal the future chance of a rate cut. Nikkei dragged by Fujikura Ltd. -6.71%, NTN Corp. +4.08%, Sumitomo Corp. -5.64%, and Toyota Tsusho Corp. -4.24%.
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Nikkei 225 Support and Resistance
The Nikkei index retreated today but the positive momentum persists holding above all major daily moving averages. Longs should follow the RSI index, which has reached 68.87 on the daily chart just exiting from an overbought level that might trigger further profit-taking.
On the downside, first support stands at 22,705.6, today’s low, a convincing break below might drive prices down to 22,450 the low from October 23. The 50-day moving average will provide extra support at 21,682.
On the upside, resistance for the Nikkei 225 benchmark stands at 22,852 today’s top, a break above will open the way for a move up to 23,000 weekly high and then at 23,528 the high from October 9th, 2018, above this level, the next resistance comes at 24,310 the high from on October 1st, 2018.
In Asian forex markets, USDJPY pair trading 0.05% lower at 107.96 the Aussie dollar trades 0.20% higher at 0.6907, while NZDUSD trades 0.34% higher at 0.6435 versus US Dollar. Gold trades higher around $1,512, while WTI crude oil is 0.30% higher at $54.36 per barrel.Download our latest quarterly market outlook for our longer-term trade ideas.
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