Nikkei 225 Seeks Direction as Wall Street Risk Appetite Improves

Nikkei 225 futures are showing signs of stabilisation around technical support, but its near-term trajectory remains uncertain ahead of the US nonfarm payrolls release.

A risk-on bounce on Wall Street has improved the near-term backdrop for risk assets, with Fed hike odds easing. S&P 500 futures rose 1% for their best day in over four weeks after finding support at the 50-day EMA and June and July highs.

Nikkei 225 futures are currently trading around technical support, but a break above 66k could bring 67k into focus. However, 66k also represents a potential resistance zone for now.