JPY weakness powers Nikkei to highest since December 4

  • Japan's benchmark equity index Nikkei is currently trading at the highest level since December 4.
  • Investors seem to have taken a heart from the weakness in the yen.

Japanese stocks seem to have picked up a bid, tracking USD/JPY's rise to 1.5-month highs above 112.00.

Nikkei - Japan's benchmark equity index - gapped higher at 22,123 earlier today and is now trading at 22,173, the highest level since Dec. 4.

The market breadth is extremely positive - 212 of 225 stocks that make up the index are currently flashing green with exporter issues leading the way higher. Names like Softbank Group, Yaskawa Electric are up 4 percent.

More importantly, the index is now hovering well above the crucial 200-day moving average (MA) line of 21,886. That average is widely considered a barometer of the long-term trend. As a result, technical buying may emerge later this week if the index closes today above the longer duration average.

That looks likely as the USD/JPY pair closed well above 111.82 (April 5 high) on Friday, establishing a higher low and higher highs pattern. Put simply, the path of least resistance for the anti-risk JPY is likely to the downside.

Nikkei Technical Levels

Nikkei 225

Today last price 22173
Today Daily Change 95.00
Today Daily Change % 0.43
Today daily open 22085
Daily SMA20 21537.75
Daily SMA50 21374.4
Daily SMA100 21050.5
Daily SMA200 21826.48
Previous Daily High 22085
Previous Daily Low 21700
Previous Weekly High 22085
Previous Weekly Low 21595
Previous Monthly High 21870
Previous Monthly Low 20845
Daily Fibonacci 38.2% 21937.93
Daily Fibonacci 61.8% 21847.07
Daily Pivot Point S1 21828.33
Daily Pivot Point S2 21571.67
Daily Pivot Point S3 21443.33
Daily Pivot Point R1 22213.33
Daily Pivot Point R2 22341.67
Daily Pivot Point R3 22598.33



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