Nikkei 225 finished 0.38% higher at 22,044 after the Bank of Japan left the interest rates policy unchanged as expected by markets. Bank of Japan Governor Kuroda noted that Japanese economy is expanding moderately. On the macro front the Japan July all industry activity index came in at +0.2% in line with expectations. Asian markets ended mixed today as oil prices stabilize. The Hang Seng trading 1.23 per cent lower at 26,427, the Singapore Straits Times index finished 0.09 per cent lower at 3,163, and the Shanghai composite ended 0,46 per cent higher at 2,999. Aussie stocks finished higher; the ASX 200 ended 0.54% higher at 6,717 as recent RBA meeting left the door open for future rates cut.
The Nikkei resumes the upward move, making higher highs and higher lows, enhancing the recent bullish momentum and reaching close to yearly highs. On the upside resistance for the Nikkei 225 stands at 22,255 today’s high, a break above, perhaps will set the stage for a move up to 22,180 the high from May 7th. On the downside immediate support stands at 22,003, today’s low and then at 21,221 the 100-day moving average. A break below that level might accelerate the selloff down to 21,128 and the 200-day moving average. All in all the momentum is bullish, but as the RSI index has reached overbought levels a correction can’t be ruled out.
In Asian forex markets USDJPY trading 0.34% higher at 108.07, the Aussie dollar trades 0,59% lower at 0.6787, while Kiwi trades 0.07% lower at 0.6310 versus USD. Gold trades lower today at 1,497, while crude oil is 0.16% higher at $58.13 per barrel.