Potential Reversal Zone (PRZ)- 39200
Nikkei surged more than 2% on weak yen and upbeat US jobs data. It hit a high of 39831 at the time of writing and is currently trading around 39526.
The yen lost its shine after positive jobs data decreased the chance of an aggressive rate cut by Fed.
The index holds above short-term 34 and 55 EMA and long-term moving averages (200- EMA) in 4-hour chart.
The near-term resistance is around 40000 any violation above will take the index to 40300/40500/40850/41000. Overall bullish continuation only above 42550.
On the lower side, immediate support stands around 39200, any breach below will drag the index down to 38800/38400/37800.Further bearishness only below 35000.
Indicator (4- hour chart)
CCI (50)- Bullish
Average directional movement Index - Bullish
It is good to buy on dips around 39000 with SL around 38400 for TP of 40800.
