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.
