FxWirePro -Nikkei 225 Daily Outlook

Nikkei recovered some of its loss on strong yen. It hit a low of 36192 at the time of writing and is currently trading around 36830.

BOJ board member Hajime Takata said in a speech today that the central bank would increase rate further if the economy improves in line with forecasts.

The index holds below short term (34 and 55 EMA) and long-term moving average (200- EMA) in the 4-hour chart.

The near-term resistance is around 37335, any violation above will take the index to 37500/37685/38000. Overall bullish continuation only above 42550.

On the lower side, immediate support stands around 36500, any breach below will drag the index down to 36285/36000.

Indicator (4- hour chart)

CCI (14)- Bearish

CCI (50)- Bullish

Average directional movement Index - Bearish

It is good to sell on rallies around 37280-300 with SL around 37685 for TP of 36200.