Nikkei 225 Retreats Ahead of Fed Decision

Nikkei 225 retreated today from yearly highs snapping an eight positive session streak, amid US-China trade deal conflicting headlines for phase one deal in November. Investors expect that the Fed will cut interest rates by 25 bps later today. The Hang Seng index trades 0.50% lower at 26,654; the Shanghai Composite is 0.50% lower at 2,939. Aussie stocks finished lower after seventh consecutive positive sessions; the ASX 200 ended 0.83% lower at 6,689.

Nikkei 225 finished 0.57% lower at 22,843 talin some profits off the table after the index hit yearly highs touching the 23,000 mark yesterday. On the economic data front, the Japan Retail Trade (year over year) came in at 9.1% topping forecasts of 6.9% in September while the Japan Large Retailers’ Sales came in at 10% beating expectations of -1.7% in September.

Nikkei dragged by NEC Corp. -5.83%, Omron Corp. -5.17%, Kobe Steel Ltd. -4.77%, and Kyowa Kirin Co. Ltd. -4.52%.

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Nikkei 225 Technical Levels to Watch

The Nikkei index finally ended lower today keeping the positive momentum as the Nikkei 225 benchmark trading above all major daily moving averages. A warning signal for longs might be that the RSI index has reached 70.71 on the daily chart an overbought level that might trigger some profit-taking.

On the upside resistance for the Nikkei 225 benchmark stands at 22,961 today’s top, a break above will open the way for a move up to 23,000 yesterday’s 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. On the flip side, first support stands at 22,827.9, today’s low, a convincing break below might drive prices down to 21,586 the 50-day moving average.

In Asian forex markets, USDJPY trading 0.04% lower at 108.84 the Aussie dollar trades 0.11% higher at 0.6871, while NZDUSD trades 0.07% lower at 0.6351 versus US Dollar. Gold trades slightly lower today at 1,489, while WTI crude oil is 0.32 lower at $55.36 per barrel.Download our latest quarterly market outlook for our longer-term trade ideas.

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