Nikkei 225 Fluctuate With ASX 200 After Federal Reserve Sends Dovish Messages


  • The FTSE China A50 index might rise along broader Asia-pacific region
  • ASX 200 index might surge after the dovish federal reserve statement, facing resistance at 6100 ahead
  • Nikkei 225 index surge in the early hours to about 22,450 leading the Asia Pacific stocks to rise higher

Nikkei 225 Index Forecast

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The Nikkei 225 index opened the day higher on Thursday, but was not able to maintain the uptrend momentum. It came in contrast to the upbeat USA trading session with the FED signaling more monetary stimulus in the FOMC meeting. The Federal Reserve plunged to fully support the credit flow to businesses and households to increase the holdings of the Treasury Securities and other commercial mortgage-backed securities, in the policy statement. This proposes that the liquidity will most likely remain ample in the future, creating a friendlier environment for risk assets and equities with the Japanese Yen Prediction – Net Long JPY Might Drive EUR/JPY, AUD/JPY.

Technically speaking, the Nikkei 225 index did not break the immediate resistance level trading at 22,800. This is the upper side of the rectangle displayed on the following chart. On the other hand, Nikkei 225 also enter into the consolidating ranging between 22,300 and 22,800.

Nikkei 225 Index Chart



Australia’s ASX 200 index mildly opened on Thursday after the US markets high. The fall in the USD sent the AUD high to the 15th month higher at about 0.7175. The strong currency might serve to hinder the stock market as the more costly currency can depress the demand for exports, at the moment; the 6100 remaining the key resistance ahead.

Technically, this ASX 200 index faces key resistance levels at 6100 Fibonacci (61.8% retracement), as ASX 200, AUD/USD Plunge As Unemployment Rates Rise to 22-Year High. With the index recovering from the March low, it has created an ascending triangle on the daily chart. The triangle’s upper bound coincides with its 61.8% retracement, which reaffirmed this key resistance. The 100-Day, 50-Day and 20-Day SMA (Simple Moving Average) indicates that the overall behavior remains bullish.

ASX 200 Index Chart

asx 200


The FTSE China A50 index seems to be consolidating this morning after the 2.5% rally yesterday. Today, the Shanghai Composite is oscillating between losses and gains after Wednesdays 2% climb. Technically speaking, it’s highly likely that the A50 index has key support at the 14,800 levels and is trying to rebound. The key resistance levels might be found in 15,430 Fibonacci (23.6% retracement). Breaking over the level can create more space for extra uptrend towards 16,650.

FTSE China A50 Index Chart


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