The Nikkei went up to 28,423 only to drop back some of the way and is now trading around 28,274 as it reaches the end of the trading session.
At the same time, Japan 10-Year JGB Auction released today at 03:35 UTC with a figure of 0.25, while the previous figure was 0.248. Japan Capital Spending (YoY) (Q3) came out at 9.8, while a consensus of analysts was expecting 6.4.
Despite posting gains so far today, Nikkei slid below its 5 day Simple Moving Average at 28,262 in earlier trade — an early indicator that a negative trend could be emerging. Bollinger Band® analysis indicates that current price action is approaching the upper band at 28,500, thereby suggesting that the Nikkei is becoming overvalued.
Technical analysis of the Nikkei price action suggests it is likely to undergo a short-term reversal amid broader bullish sentiment.
The Nikkei shows positive signs, other assets are also on par: S&P 500 added 3.09% to its value, now trading at 4,080. Nasdaq rallies 4.41% to trade around 11,468. Dow Jones soars 2.18% to trade around 34,600.
Elsewhere, Japan BoJ Governor Kuroda speech is scheduled today at 06:00 UTC.
The index has been trending positively for about a month. The Nikkei has recovered 181,281% since descending to a significant low of 15.42 around 2 months ago.