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Nikkei supported by risk sentiment

FXStreet (Córdoba) - The Japanese Nikkei extended its advance, adding 182 points or 1.0% to its latest rally, to end Tuesday at 18,186.10, boosted by the Trans-Pacific Partnership trade pact, yet to be approved by the US Parliament.

Also, fading expectations that the Fed will raise rates this year fueled risk appetite at the beginning of the day, particularly with China out of the picture until next Thursday.

Nikkei technical view

“The index held around its close in after hours trading, and the daily chart shows that, despite the index is well above its 20 SMA, the technical indicators have lost their upward strength and turned south around their mid-lines, limiting chances of additional gains”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, a positive tone prevails as the 20 SMA heads higher around 17,990, whilst the Momentum indicator heads higher above its 100 level, and the RSI consolidates well above its 50 line”.

“The tepid tone of Wall Street may put some pressure over Asian shares this Wednesday, with a break below 18,047, the daily low, required to confirm a continued decline during the upcoming sessions”, Bednarik added.

Support levels: 18,047 17,936 17,857. Resistance levels: 18,227 18,302 18,422.

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