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FxWirePro-Nikkei 225 Daily Outlook

Nikkei pared some of its gains on the strong yen. It hits a high of 37064 yesterday and is currently trading around 36515.

 

US PPI came softer than expected and it increases the chance of aggressive rate cuts by Fed next week.

 

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

 

The near-term resistance is around 37147, any violation above will take the index to  37500/37695/38000. Overall bullish continuation only above 42550.

 

On the lower side, immediate support stands around 36360, any breach below will drag the index down to 36175/36000/35870.Further bearishness is only below 35000.

 

Indicator (4- hour chart)

 

CCI (14)- Bullish

 

CCI (50)- Neutral

 

Average directional movement Index - Neutral

It is good to sell on rallies around 36980-37000 with SL around 37500 for a TP of 35000.

 

 

 

 

 

 

 

 

 

 

 

 

 

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