After a few weeks of consolidation in tight range, Nikkei finally followed strong global risk appetite and staged an upside break out today. It closed up 714 pts, or 2.66%, at 27568.15, a new 30-year high. Next near term target is 100% projection of 16358.19 to 23178.10 from 21710.00 at 28529.91.
Much more importantly, it has now taken out a key multi-decade fibonacci level. That is 61.8% retracement of 39260 (1989 high) to 6994.89 (2009 low) at 26934.72. The long term up trend from 6994.89 should now have the potential to extend to a new record high, in medium term long term. Japan is heading back to its glory days, after a few lost decades.
