- Nikkei is consolidating between 22636 and 22090 for the past 1- week. The index was in in bullish mode for past 6 weeks on account of weakening yen.US stock indices has once again taken support near 200 –day MA and shown a good recovery. US markets closed slightly higher yesterday with Dow jones 24357 (0.30% higher) and S&P500 2672 (0.30% higher). US futures is trading flat with Dow jones at 24359 (0.1% higher) and S&P500 2668 (0.06% lower). It is currently trading around 22490 0.09% higher.
- USD/JPY recovered slightly almost more than 70 pips after hitting low of 108.64. Any close below 108.50 confirms minor weakness and a decline till 108/107.80 likely. The major resistance is around 110 and any break above targets 111/111.80.
- On the lower side, index major support is around 22300 (100- day MA) and any break below will drag the index down till 22160 (20- day MA)/21697 (Apr 13th low).
- The near term resistance is around 22620 and any break above will take the index to next level till 22694 (61.8% fibo)/23000.
It is good to buy on dips around 22160-200 with SL at 22000 for the TP of 22500/22680.
