Nikkei surged above 38000 on upbeat market sentiment. It hit a high of 38012 at the time of writing and is currently trading around 37886.
BOJ kept its rates unchanged at 0.25% as expected. Governor Ueda said that the central bank is willing to hike rates if inflation remains on track.
The index holds below short-term 34 and above 55 EMA and below the long-term moving average (200- EMA) in the 4-hour chart.
The near-term resistance is around 38200, any violation above will take the index to 38695/39000. Overall bullish continuation only above 42550.
On the lower side, immediate support stands around 37240, any breach below will drag the index down to 36800/36360/36175/36000/35870.Further bearishness only below 35000.
Indicator (4- hour chart)
CCI (14)- Bullish
CCI (50)- Bullish
Average directional movement Index - Bullish
It is good to buy on dips around 37570-600 with SL around 37000 for TP of 39000.
