Nikkei Trades Lower, Positive Momentum Holds
The Japanese Nikkei 225 benchmark trades lower today at 20,958 as traders await the key Federal Reserve meeting on Wednesday for clues on the Central Banks next move. This will be one of the most important meetings, where apart from the rate decision, the statement and press conference, we also get updated economic projections, and a new “dot plot”. The July futures suggest a 66.6% chance of a cut as inflation slows and the global economy weakens.
On the technical side Nikkei 225 short term positive momentum is questioned today as the Japanese benchmark currently trades below the 20 day moving average. On the upside first resistance stands at 21,296 the 150 day moving average while extra offers will emerge at 21,453 the 50 day moving average. On the flipside immediate support stands at the 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.