- Nikkei is trading slightly higher in choppy trade for 16th consecutive days after Abe's election victory and weak yen .This will give political stability and continuation of loose monetary policy. The index has made a fresh 21- year high at 21836 and is currently trading at 21727 0.38% higher.
- The rally was mainly driven due to weakness in yen. The yen hits three month low after Abe's election victory.
- USD/JPY has shown a minor decline after hitting high of 114.10. The pair bullish continuation can be seen if it closes well above 113.45 and any close above will take the pair till 115. The pair's major support is around 112.25 (233- day MA) and any close below will drag the index till 111.65/111.13. It is currently trading around 113.77.
- On the lower side, index major support is around 21695 (hourly Kijun-Sen) and any break below will drag the index down till 21450 (100- hourly MA)/21000.
- The near term resistance is around 21800 and any break above will take the index to next level till 22000/22250.
It is good to buy on dips around 21350-400 with SL around 21200 for the TP of 21780/22000.
