FxWirePro-Nikkei 225 Daily Outlook

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.