Nikkei 21 month high – 28/12

Nikkei made a new 21 month high today. It is up 23% in 2012, its best yearly performance in 7 years.

Main reason for the last upmoves has been a weak Yen that benefits Japanese exporters.

Nikkei has the potential to be one of the best performers next years given the determination of the Bank of Japan to follow a more aggressive monetary policy and weaken the Yen in order to spur growth and fight deflation.

Next major resistance is at 10.887 (high from Feb 2011).

Next support at just below 10.200 (last week high, April 2012 and July 2011 high).

Petros