The Nikkei 225 has surged higher and has established a fresh YTD high after breaking above the key psychological 30000 mark. The target of analysts at Credit Suisse remains seen at 32115/20 – the 78.6% retracement of the entire bear market from the 1989 peak.
Key quotes
“With the core uptrend clearly intact, we maintain our core bullish outlook. We see resistance next at 31370, the August 1990 high ahead of our long-term objective of the 78.6% retracement of the entire fall from 1989 at 32115/20 in reach, where we would expect to see a pause and a fresh phase of consolidation. A direct break though can expose the 33345 high of June 1990.”
“Immediate support moves higher to 29790, then 29660/520, which we look to now ideally hold. Below can ease the immediate upside bias for a move back to the 13-day exponential average at 29065 before the previous consolidation high at 28980, where we expect fresh buyers to emerge.”
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