Bottom Line
The Nikkei 225 holds key support at 63,700 and traders are still buying back into the index. The widespread market participation also bolsters the momentum, and continued improvements in technology, electronics and manufacturing stocks continue to drive the index. Tokyo Electron’s improved performance also keeps the bull market alive.
But the mining, metals and some industrial companies are not even in equilibrium yet, as evidenced by their weakness. Any move above 66,200 will pave the way for a retest of the record high, while a move below 63,700 will provide momentum back to the 60,000-62,000 support area. As long as buyers hold the existing support level, the Nikkei 225 is positive for now.
Read more: Yen Intervention Risk Caps Japan Stock Rebound
AloJapan.com