On Friday, the Japanese stock market index Nikkei 225 once again updated the maximum of the year. During this week, the bulls have overcome:
→ the psychological level of USD 30k;
→ the 2022 high around 30,800.
The strong momentum in the Nikkei 225 market is driven by:
→ the weak yen;
→ a strong reporting season for Japanese companies;
→ the news about foreign investment, including Warren Buffett's.
Today's bullish momentum is supported by the latest news that US lawmakers may reach an agreement on a debt ceiling. A bipartisan deal is scheduled to be voted on in the coming days to prevent a default in the US.
The Nikkei 225 chart shows that in case of further growth, the index value may encounter resistance in the 31,500 area — here lies the line (1) of the parallel channel, which is built on a series of important extremes in 2022-2023. At the same time, reasonable investors can take advantage of optimism to take profits on longs.
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