Nikkei 225 breaks higher, targets 49,300 – Société Générale

The Nikkei 225 has surged past its September high with an upward gap, reinforcing bullish momentum. While the move appears stretched, there are no clear signs of a meaningful correction, Société Générale's FX analysts note, Société Générale's FX analysts note.

Uptrend strengthens as Nikkei gaps above September high

"Nikkei 225 has crossed above the upper part of recent brief consolidation and September high with a gap. The move looks a bit stretched however signals of a meaningful pullback are not yet visible."

"In case a short-term decline materializes, the peak of September near 45800pts could be an important support. The next projections are situated at 49300pts, which is also the upper limit of a steep ascending channel and 50800pts."