As the European markets benefited from the announcement of the European agreement (Growth Pact of EUR 120 billion and direct recapitalization of banks by the European Stability Mechanism, ESM), NIKKEI index got some relief. It also took advantage of the slight slowdown of its currency.

The Japanese index lent support to last May level of 8295 points and rallied directly toward 9107 points. The reaction in this area will be decisive for the ongoing trend to come. Above this resistance (50% retracement of the previous downtrend), we should see a new bullish momentum toward 9575 points.

If Japanese investors fail to reverse the trend, the movement of these sessions will look like a simple technical recovery, implying a probable relapse toward 8655 points.

It should be noted that European stocks have been traded on crucial levels. Nevertheless, no signs of weakness seem to take shape especially as operators anticipate interventions of the ECB and the FED in a context of global economic slowdown.