Nikkei tops 20K for the first time since December 2015

Japan’s Nikkei index rose to 20047, the highest level since December 2015. The stocks are well bid, courtesy of overnight losses in the Japanese Yen and due to the gains on the Wall Street. 

The USD / JPY pair rose from the low of 110.63 to 111.36 on Thursday and extended gains further to a 5-day high of 111.66 in the Asian session today. Strong US ADP employment report released in the NY session strengthened the bid tone around the US dollar. 

Meanwhile, Dow Jones added 135 points. The positive sentiment in the US stocks seems to have hit the Asian shores as well. 

Nikkei Technical Levels

A golden cross - bullish 50-MA and 200-MA - was confirmed in early 2015. The index staged a solid rebound from the upward sloping 50-MA in mid-2016 and since then has been rallying in line with the persistent Yen weakness. 

A strong resistance is seen at 20252 (Apr 2015 high) and 20655 (May 2015 high). On the downside, support is seen at 19994 (Nov 2015 high) and 18224.7 (Apr 2017 low).