Nikkei 225 index rose to fresh multi-year high at 21770 on Monday (the highest since July 1996) in fresh bullish extension of last Friday’s strong rally.
The index was boosted by election victory of Japan PM Abe’s ruling coalition, signaling continuation of their policy for fiscal spending and monetary easing.
The price was up around 0.75% since opening and maintaining strong bullish momentum for further advance.
Bulls eye immediate target at 22402 (Fibo 123.6% projection of the upleg from monthly higher base at 14761 (2016 lows) and may extend to 23305 (Fibo 138.2% projection).
On the other side, strongly overbought daily studies warn of correction but so far without firmer bearish signal.
Monday’s low at 21585 marks initial support, followed by Friday’s low at 21300, reinforced by rising daily Tenkan-sen. Ascending thick 4-hr Ichimoku cloud (spanned between 21235 and 20985) which tracks the ascend in past two weeks, should contain corrective dips.
Res: 22000, 22286, 22402, 22760
Sup: 21680, 21585, 21300, 21235
