FxWirePro-Nikkei 225 Daily Outlook

Nikkei gained sharply due to a dovish 50 bpbs rate cut by the Fed. It hits a high of 37400 at the time of writing and is currently trading around 37262.

Fed cuts rates by 50 bpbs to 4.75%-5%. It signals towards two to three 25 bps cuts in the next two meetings of 2024.

The central bank mentioned that Job gains have slowed and inflation is moving towards a fed target of 2% but remains slightly elevated.

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 37500, 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 36600, any breach below will drag the index down to 36360/36175/36000/35870. Further bearishness is only below 35000.

Indicator (4- hour chart)

CCI (14)- Bullish

CCI (50)- Bullish

Average directional movement Index - Neutral

It is good to buy on dips around 37000 with SL around 36600 for TP of 38000.