Nikkei Index touches 22,500.00 for the first time since January tumble

• The Nikkei is continuing to climb, bolstered by BOJ confidence.
• Equities, bonds have recovered well from January's collapse on inflation fears.

The Nikkei 225 is lifting once more, stretching to touch the 22,500.00 level in Tokyo trading; the index has receded slightly but still maintains its bullish stance, sitting just beneath 22,450.00.

Japan's leading index has managed to pick itself up after a spectacular decline that began in late January, taking the index off a record high of 24,200.00. The Nikkei hit a low of 20,565.00 in February when equity markets collapsed and bond yields spiked to multi-year highs as the threat of inflation stoked latent fears of rising interest rates and the reduction of easy monetary policies from central banks around the globe.

Markets have stabilized since January's decline, and the Nikkei has managed to claw back half of the decline. The Japanese market is currently being propped up by a positive outlook on growth expectations, and the Bank of Japan (BOJ) remains positive despite inflation still falling well below the central bank's 2% target.

The Yen remains elevated despite repeated talking points from the heads of the BOJ, but the constant chatter seems to be beginning to take hold; the Yen has halted its advance up the charts lately, and the BOJ will take whatever victory they can get, as an overpowered Yen threatens to extinguish what little economic growth Japan is currently experiencing.

Nikkei 225 Technicals

Long-term traders will note that the index has reached the 50.0 Fibo retracement of the decline that began in January, though the Nikkei is still safely on the higher side of the long-term rising trendline; H4 charts are pricing in consecutive higher lows and candles continue to climb over resistance. Support can be found at the recent swing high at 22,195.00 and 21,550.00, while resistance lies far above at 23,095.00 and 23,465.00.