Nikkei pared some of its gains as the yen recovered. It hit a low of 37990 at the time of writing and is currently trading around 38008.
The index holds above short-term 34 and 55 EMA and long-term moving averages (200- EMA) in an 8-hour chart.
The near-term resistance is around 38700, any violation above will take the index to 39000/39200/39500/40000—overall bullish continuation only above 42550.
On the lower side, immediate support stands around 37800, any breach below will drag the index down to 37500/37200/37000/36800—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 38000 with SL around 37500 for TP of 39000.
