Nikkei closed up strongly by adding 531.78 pts or 1.83% today, and the near term development is looking rather bullish. The corrective pattern from 30714.52 has likely completed at 26954.81. Further rise is now expected as long as this week’s gap is not covered. Next target is 30714.52 high.
Medium term development is also bullish with strong support seen from 55 week EMA. A market friendly result of next week’s leadership election of the ruling Liberal Democratic Party of Japan would probably pop Nikkei through 30714.53 high. In that case, the long term up trend would extend to 38.2% projection of 16358.19 to 30714.52 from 26954.81 at 32438.92 next.