Global equity markets finished yesterday's trading in risk-on moods and upbeat sentiment can also be spotted at the beginning of today's session. Asian equities rose sharply and Nikkei 225 Index has been a top performer, recouping much of the losses from earlier this week and taking the lead from a sharp turnaround rally on Wall Street overnight, even after US inflation data came in hotter than expected in September. Stocks then came roaring back in what analysts attributed to various factors, including technical levels that triggered programmed buying. Japanese stocks also benefited from another set of dovish comments from BoJ governor Kuroda, who said that rising rates at the moment would be a bad idea. Also futures from the Old Continent point to a higher opening of the European cash session today, German DAX (DE30) is one of top performers with a 1.5% gain at press time. An improvement in moods is accompanied by weakening of the US dollar and a drop in US yields.
JAP225 rally over 3.0% and is currently testing key resistance at 27170 pts, which is marked with previous price reactions, 23.6% Fibonacci retracement of the upward wave launched in March 2020, downward trendline and 200 SMA (red line). Should break higher occur, upward move may accelerate towards next resistance at 28400 pts. However if sellers manage to regain control, another downward impulse towards recent lows at 25620 pts may be launched. Source: xStation5
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