Today at a glance: after ending today at 27,931, the Nikkei traded in a 27,878 – 28,045 range before settling at 27,900.
Uncertainty around the Nikkei is reflected by published market data as Japan National Core CPI (YoY) (Oct) came out at 3.6, while a consensus of analysts was expecting 3.5. Japan National CPI (MoM) released yesterday at 23:30 UTC with a figure of 0.6, while the previous figure was 0.3.
Nikkei made an initial break below its 5 day Simple Moving Average at 27,938, a possible indication of a forthcoming negative trend. The Nikkei's upper Bollinger Band® is at 28,300, suggesting that a downward move may follow. On the other hand, note that the Nikkei is approaching key support, around 15.92 points away from 27,884. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.
Despite the market lacking direction, technical chart analysis strongly suggests the Nikkei is positioned for a downward move in the near term.
While the Nikkei was pretty flat today, mixed performances were seen elsewhere as notably, FTSE rose 0.79% today and closed at 7,346.54. CAC went up by 1.12% today, and closed at 6,650. EuroSTOXX added 1.26% and closed around 3,878.42 today.
Data to be released Monday might clear up some of the market fog as Japan CFTC JPY speculative net positions scheduled to come out today at 19:30 UTC.
The index has been trending positively for about a month. The Nikkei hit a significant low of 15.42 around 2 months ago, but has since recovered 181,032%.