Nikkei declined sharply after hitting 25- year high at 23423 following a negative close in Wall Street and slightly stronger yen. The index has jumped almost 10% since Oct 23rd after Abe land slide victory and is in over…
Nikkei declined sharply after hitting 25- year high at 23423 following a negative close in Wall Street and slightly stronger yen. The index has jumped almost 10% since Oct 23rd after Abe land slide victory and is in overbought zone. It is currently trading around 22536 0.32% higher.
USD/JPY is consolidating in narrow range between 113.09 and 114.73 for the past one week. The pair bullish continuation can be seen if it closes above 114.45 (161.8% fibo) level. On the lower side, major support is around 112.95 (Oct 31st 2017 low) and any close below will take the pair till 112.25 (233- day MA)/111.68 (100- day MA)/111.13. It is currently trading around 113.65.
On the lower side, index major support is around 22280 (89 hourly EMA) and any break below will drag the index down till 22000/21840.
The near term resistance is around 23500 and any break above will take the index to next level till 24000/24280.
It is good to sell on rallies around 22750-22800 with SL around 23000 for the TP of 22260/22000.
