FxWirePro- Nikkei 225 Daily Outlook

Nikkei gained sharply and surpassed the 39275 high made after BOJ hiked rates by 25 bpbs. It hit a high of  38826 at the time of writing and is currently trading around 38776.

Exporters mainly led the jump as the yen weakened  0.18% to 145.06.

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

The near-term resistance is around 39500, any violation above will take the index to 40000/40350/40800—an overall bullish continuation only above 42550.

On the lower side, immediate support stands around 38400, any breach below will drag the index down to 38000/37700—further bearishness only below 35000.

Indicator (4- hour chart)

CCI (14)- Bearish

CCI (50)- Bullish

Average directional movement Index  - Neutral

It is good to buy on dips around 38400-450 with SL around 38000 for TP of 42000.