The Nikkei 225 rebounded sharply, forming a bullish harami after a bullish candle appeared within the previous day's bearish range. The 9-day RSI rose to 34.5%, while the Ichimoku Cloud twist raised expectations of a technical rebound.
The Nikkei 225 rebounded sharply, extending gains after opening higher. Gains stalled at one point in the afternoon, but the index closed with a bullish candle within the previous day's long bearish range, forming a bullish harami.
The 9-day RSI rose from 24.2% to 34.5%, temporarily indicating stronger buying interest as investors covered short positions.
The Ichimoku Cloud appeared to produce a technical rebound as it twisted, with attention focused on the rebound from the level near the lower, -3σ Bollinger Band.
Potential upside targets include the psychological levels of ¥60,000 and ¥61,000, as well as the 200-day moving average at ¥61,990. In terms of multiples, the ¥63,000 range and the 10/29 high of ¥64,831 may also come into view. On the downside, levels such as ¥58,000 and ¥57,000, the low of ¥56,745, and levels such as ¥56,000 and ¥55,000 were seen as potential support.