World stock indices grew on Tuesday as cheap US Dollar gives positive impulse to the stock market.
On today’s press conference regarding the state of the Japanese economy, head of the Bank of Japan Kuroda stated that the regulator is ready to change its policy as soon as it becomes necessary to achieve the inflation target of 2%. For now, however, the QE program remained unchanged at 80 trillion Yen per year.
Amid the positive news, the Nikkei Stock Average index closed the Asian session 0.8% higher and reached 18322 points. An upward trend in the index could continue until 28 October when the next Fed meeting is due.
Support and resistance
In the end of September, the NKY index bounced off strong support levels at 17100 (ЕМА200), 17450 (ЕМА144 on the weekly chart).
The price is trading near the resistance level at 18345 (ЕМА144 on the 4-hour chart), a breakout of which would send the index towards the levels of 18650 (ЕМА200 on the 4-hour chart), 18890 (ЕМА200 on the daily chart), 19100 (ЕМА144).
On the 4-hour and daily charts, OsMA and Stochastic recommend long positions, and turn to purchases on the weekly chart.
Support levels: 18050, 17720, 17450.
Resistance levels: 18650, 18890, 19100.
Open long positions from current levels with targets at 18650, 18890, 19100 and stop-loss at 18160.
Pending sell orders can be placed at the level of 18050 with the target at 17720 and stop-loss at 18350.