{"id":95982,"date":"2016-09-26T05:43:10","date_gmt":"2016-09-26T09:43:10","guid":{"rendered":"http:\/\/countingpips.com\/?p=95982"},"modified":"2016-09-26T05:43:10","modified_gmt":"2016-09-26T09:43:10","slug":"nikkei-japan-stock-market-nikkei-technical-analysis-september-26-2016","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/09\/nikkei-japan-stock-market-nikkei-technical-analysis-september-26-2016\/","title":{"rendered":"NIKKEI: Japan Stock Market Nikkei Technical Analysis September 26, 2016"},"content":{"rendered":"
September 26, 2016<\/div>
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By IFCMarkets<\/a><\/p>\n

Bank of Japan monetary stimulus program extension may lift Nikkei<\/strong><\/p>\n

The Bank of Japan left the deposit rate at minus 0.1% at September 21 policy meeting but stated it will continue quantitative easing program until the inflation overshoots the 2% inflation target. Will Nikkei <\/a> continue rising?<\/p>\n

The Japanese GDP expanded 0.2% in the second quarter over the previous quarter, slowing from 0.5% quarterly rate in the first quarter. The government unveiled a new budget with expanded fiscal spending measures of JPY 28.1 trillion ($269 billion) to stimulate the economy in addition to existing monetary program of quantitative easing. The focus of the adopted spending measures was the reconstruction in earthquake-hit areas and infrastructure projects. Data show the economy expanded in the second quarter as fixed capital investment increased, with private consumption and contribution from external trade steady. Recent reports indicate continued growth in following months too: capital spending expanded in July with core machinery orders ring 4.9% over the previous month, following a 8.3% growth in June. While industrial production was flat in July after a 2.3% increase in June, another positive development was improvement in consumer confidence with consumer sentiment rising in August to 42.0 from 41.3 in July. For export oriented Japanese economy with stagnant domestic demand the pace of economic growth depends strongly on external demand. And despite a massive quantitative easing program Japanese yen is rising, negatively impacting competitiveness of Japanese exporters and limiting growth. At the same time the Bank of Japan left the deposit rate at minus 0.1% at September 21 policy meeting but stated it will continue asset purchases of quantitative easing program until the inflation overshoots the 2% inflation target. While the size of annual asset purchases was not increased the extension of asset purchases will provide continued increase in liquidity which is bullish for growth and asset prices.<\/p>\n

\"Nikkei\"<\/p>\n

On the daily chart the NIKKEI: D1 <\/b> has been rising since end of June. The price is edging toward the 200-day moving average.<\/p>\n