The Japanese Nikkei fell 73 points or 0.37% this Thursday, ending the day at 19,520.69, hurt by a stronger yen. Electronics-related equities, however, remained buoyed, with Pioneer leading gainers, up by 4.84%, followed by Toshiba that added 4.72%. Still, most components closed in the red, as yen's sudden recovery triggered profit-taking. The benchmark fell further in after-hours trading, now trading around 19,450 ahead of Friday's opening, and the daily chart shows that the index has lost the strong upward momentum seen last Wednesday, but the downward potential seems limited, as the index is holding above its 20 SMA, whilst technical indicators eased, but hold within positive territory. In the 4 hours chart, the index bounced from a still bullish 20 SMA, whilst technical indicators pulled sharply lower from overbought readings, holding anyway within positive territory. The daily low was set at 19,372, with a break below it opening doors for a steeper decline, particularly as the USD/JPY pair trades near ¥115.00 for the first time in almost a month.
Support levels: 19,372 19,304 19,237
Resistance levels: 19,475 19,528 19,590