Today at a glance: with a daily low of 26,900, the Nikkei closed today at 27,156, after ending yesterday at 26,776 and gaining 380.35 points (1.42%).
Meanwhile, Japan Tertiary Industry Activity Index (MoM) came out at 0.7, while a consensus of analysts was expecting 0.3. Data for Japan Industrial Production published yesterday at 04:30 UTC came out at 3.4%, beating projections of 2.7% and showing improvement over the preceding figure of 2.7%.
Despite posting gains on today, Nikkei slid below its 200 day Simple Moving Average at 27,141 during the last session — an early indicator that a negative trend could be emerging. 'Bearish Harami' is a candlestick chart indicator used for detecting reversals within a prevailing bull trend. It is generally indicated by a small price decrease that's contained within a broader upward price movement and is commonly associated with a bullish trend coming to an end. The Nikkei's upper Bollinger band is at 27,700, this is a slight indication of a slowdown.
Despite basking in an uptrend and bullish intraday sentiment, chart analysis indicates the Nikkei is set for a reversal in the coming days.
The Nikkei shows positive signs, other assets are also on par: S&P 500 went up by 2.65% today, and closed at 3,678. ASX 200 added 1.72% and closed around 6,664.4 today. Notably, Nasdaq rose 3.43% today and closed at 10,321.
Furthermore, the market is looking at Japan Exports is projected to outperform its last figure with 27.1%. It previously stood at 22%; data will be released tomorrow at 23:50 UTC. Japan Trade Balance (Sep) will be released tomorrow at 23:50 UTC. Japan BoJ Board Member Adachi speech is expected tomorrow at 01:30 UTC.
Having set a significant high of 29,800 a month ago, the Nikkei is trading 173,543% lower.