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.