A quick look at today: bullish sentiment helped the Nikkei to push 344.47 points higher, reaching session highs around 27,943, before consolidating until close. Ultimately, the Nikkei closed today at 27,872.
At the same time, Japan Household Spending (YoY) (Sep) released yesterday at 23:30 UTC with a figure of 2.3, while the previous figure was 5.1. Japan Household Spending (MoM) (Sep) came out at 1.8, while a consensus of analysts was expecting 1.7.
The Nikkei chart analysis: Nikkei price action is currently oscillating around the 27,929 resistance level with prices moving above and below several times during the session. Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at 27,976, thereby suggesting that the Nikkei is becoming overvalued.
Notwithstanding the Nikkei’s appreciation in recent days, the technical outlook suggests its bullish run is now fading.
The Nikkei shows positive signs, other assets are also on par: Dow Jones is trading around 33,317 after ending today’s session at 32,827 (up 1.49% today). S&P 500 is trading around 3,854 after ending today’s session at 3,806.8 (up 1.24% today). KOSPI Composite Index added 1.15% and closed around 2,371.79 today.
Furthermore, the market is looking at Japan Current Account n.s.a. (Sep) scheduled to come out today at 23:50 UTC. Japan Adjusted Current Account is scheduled for today at 23:50 UTC.
Having set a significant low of 15.42 a month ago, the Nikkei is trading 178,419% higher.