The Japanese Nikkei 225 benchmark continues the rally which started June 3 registering the fifth straight positive close. Nikkei 225 finished 1.20 percent higher at 21,134 after news that President Trump decided to suspend tariffs against Mexico indefinitely and better than expected trade data from China. The Japan May economy watchers survey current conditions came at 44.1 worst than analyst’s consensus at 45.5 expected. Sentiment for equities has improved around the globe as investors increase bets that FED will proceed with three rate cuts until the end of the year.
On the technical side Nikkei 225 enhanced the short term positive momentum breaching above the 20 day moving average and now targets 21,254 the 50 day moving average. On the flipside immediate support stands at the 20 day moving average at 21,000 while solid support for the index can be met 20,647 the previous week low. The Japanese economy, world’s third-largest economy is facing growing downward pressure as the U.S.-China trade war intensifies and global demand wanes, while at home consumers are reluctant to spend.