Nikkei poised to open higher - FXStreet

A softer Yen helped the Nikkei 225 to close in the green this Monday, up by 0.68% to end at 16,216.03. The Japanese benchmark surged after falling for six days in-a-row, boosted by real estate-related shares, up on a report suggesting strong earnings in the sector will be strong through the 2016 fiscal year. The index saw a modest advance in after-hours trading, and is poised to open around 50 points higher.

Nikkei technical perspective

“Technically, however, the daily chart shows that the Nikkei continues trading well below its moving averages, whilst the Momentum indicator maintains its bearish slope within negative territory and the RSI indicator hovers around 46, all of which limits chances of a steeper recovery,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, further gains also seem limited, as the technical indicators have turned lower within positive territory, although the 20 SMA turned slightly higher below the current level, now around 16,081, the level to break to see the index turning bearish.”

Support levels: 16,172 16,081 16,005. Resistance levels: 16,307 16,400 16,525.