Nikkei 225 Pressured Ahead of Softbank Earnings as Sony Shines

Summary:

The Nikkei 225 index has found a substantial resistance ahead of key earnings from Softbank. Sony shares have risen by more than 10%

The Nikkei 225 index dropped by more than 1% today as traders waited for key corporate earnings from Japan. The blue-chip index is trading at ¥28,340, which is slightly below the year-to-date high of ¥28,965.

Nikkei 225 news: The biggest focus in Japan today is about the important earnings by some of the biggest Japanese companies. Some of those firms that will publish their earnings are Chugai Pharmaceutical, Softbank, Mitsubishi UFJ, and Takeda. Also, the sogo shosha companies that Warren Buffett has invested in like Sumitomo and Itochu will also publish their earnings. Nikkei top movers: Sony is the best-performing company in the Nikkei 225 index today. Its shares have risen by more than 10% after the company reported strong earnings boosted by PlayStation sales. Other best performers are Chiyoda Corp, Alps Electric, Hitachi, and Kawasaki. On the other hand, the worst performers are Kao Corp, Z Holdings, Recruit Holdings, and Marubeni.

Nikkei 225 technical outlook

The Nikkei index has found a substantial resistance after the index reached a 31-year high of ¥28,965. The price has also moved above the 25-day and 15-day moving averages while a divergence pattern has formed as shown by the Relative Strength Index (RSI). Therefore, the index will likely remain being under pressure in the near term. A cross above ¥28,965 will invalidate this price action.