FxWirePro: Nikkei recovers sharply following footsteps of Wall Street ,good to buy on dips

Asian markets are trading strong and jumped more than 2% following footsteps of US markets. US markets has halted its weakness and jumped more than 3% biggest rally since 2011. The jump was mainly due to better than expected US Non farm payroll data and dovish Fed comments. Wall Street closed positively with with Dow Jones at 23433 (3.29% higher) and S&P500 at 2531 (3.43% higher). US economy has added 312000 jobs compared to forecast of 184000 and unemployment rate increased to 3.9% from 3.7%. Shanghai is trading higher and is currently trading around 2525 (0.44% higher). Nikkei has recovered nearly 1000 point from low of 19245 and currently trading around 20115 (0.34% higher).

USDJPY has shown a massive recovery of more than 350 pips and hits high of 108.58. The pair has shown a minor decline and is currently trading around 108.15.

On the lower side, near term support is around 19000 and any break below targets 18600/18000.

The near term resistance is at 20000 and any convincing break above targets 20509/21026 (55-day EMA).

It is good to buy on dips around 19450-500 with SL around 19000 for the TP of 21010.