The Nikkei 225 advanced for a second consecutive session, with attention focused on whether bullish candles would continue for 2 straight days following an inside bar. The market tested a rebound with the previous day's close in mind and ended with a bullish candle.
The Nikkei 225 tested a rebound after opening with the previous day's close in mind, maintaining its advance for a second consecutive session. Although momentum weakened compared with the previous day, the market ended trading after forming a bullish candle.
The market closed above the Ichimoku Cloud's conversion line after forming a bullish candle toward the 10-day moving average. The 9-day RSI rose from 37.9% to 38.4%, suggesting a technical rebound in the market.
The current move is viewed as being within the range of a technical rebound, and there is a view that the adjustment from the early-October high will continue. The focus going forward is on whether the market can break above the downward-sloping moving averages.
Upside targets include the 10-day moving average, the 200-day moving average, the psychological levels of ¥63,000 and ¥64,000, and the late-August high of ¥64,831. Downside targets include ¥59,799, ¥59,000 and ¥58,000.