The Japan 225 (stock futures) index had a good rally after bouncing from 16888 to break above the daily Ichimoku cloud and reach 19958 early on Thursday.
The bias is bullish as the tenkan-sen and kijun-sen lines are positively aligned and rising and the RSI has not reached overbought conditions yet.
There is scope to target the next key level of 20000. This is quite an important barrier to the upside which if the market fails to breach, prices will fall back down. Support lies at 19379, which is the 61.8% Fibonacci retracement level of the 20928 – 16888 (August- September) fall.
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