FxWirePro: Nikkei recovers sightly after BOJ monetary policy, good to buy on dips

• Asian markets are trading weak excluding Nikkei which has recovered sightly after BOJ monetary policy. US markets has closed lower mainly due to technology stocks. The gains in banks and other sectors was offset by slump in tech stocks.BOJ has kept its interest rates unchanged but added more flexibility to stimulus programme.BOJ has cuts its inflation forecast for year 2018 from 1.3% to 1.1%. BOJ has voted 7-2 on Yield control frame work. According to the Central bank “yields may move upward and downward to some extent mainly depending on developments in economic activity and prices”.US market has closed weak with Dow Jones at 25306 (0.57% lower) and S&P500 2802 (0.58% lower). USD/JPY which is the main indicator of geo political tension is trading slightly higher after BOJ but there was no follow up buying. US futures is trading flat with Dow Jones at 25301 (0.04% higher) and S&P500 2806 (0.04% higher). Nikkei is currently trading around 22555 0.35% higher.
   
• USD/JPY is trading slightly lower after hitting high of 111.43 and is currently trading around 111.02 (0.2% higher).
   
• On the lower side, index major support is around 22380 (200- day MA) and any break below will drag the index down till 22270/22000/21750/21460.
   
• The near term resistance is around 22800 and any convincing break above will take the index to next level till 23050/23200.

It is good to buy on dips around 22450-500 with SL at 22270 for the TP of 23040.