Nikkei 225 at Fresh 4-Month Highs After the US-Japan Initial Trade Agreement
Asian markets ended lower today amid increasing tensions in Middle East. The Hang Seng trading 1.41 per cent lower at 26,736, the Singapore Straits Times index finished 0.56 per cent lower at 3,186, and the Shanghai composite ended 1,69 per cent lower at 2,979. Aussie stocks finished higher; the ASX 200 ended 0.33% higher at 6,695 as recent RBA meeting left the door open for future rates cut.
Nikkei 225 finished 0.06% higher at 22,001 getting a boost after President Trump announced that US has reached an initial trade agreement regarding tariff barriers with Japan.
The Nikkei continues north for ninth consecutive trading session, making higher highs and higher lows, enhancing the recent bullish momentum and reaching the upside target for the index that we mentioned in our Nikkei index technical analysis outlook the previous week. On the upside resistance for the Nikkei 225 stands at 22,041 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 up to yearly highs. On the downside immediate support stands at 21,878, today’s low and then at 21,224 the 100-day moving average. A break below that level might accelerate the selloff down to 21,113 and the 200-day moving average.
In Asian forex markets USDJPY trading 0.07% higher at 108.13, the Aussie dollar trades 0,40% lower at 0.6837, while Kiwi trades 0.23% lower at 0.6329 versus USD. Gold trades lower today at 1,495, while crude oil is 2.57% lower at $54.32 per barrel.