FxWirePro: Nikkei Daily Outlook

FxWirePro: Nikkei Daily Outlook

Nikkei is in uptrend following the footsteps of Wall Street after Dovish Fed Chairman testimony.  Fed Chairman reaffirmed that it would act as "appropriate" to sustain the economic expansion.US bond yield declined and the stock market rallied after Fed confirms rate cut in Jul meeting. The index hits high of 21647 and is currently trading around 21612.

US Market- The Wall Street has closed higher and hits a fresh all-time high with Dow Jones and S&P500 closed at 26860 (0.29%) and 2993 (0.13%) higher. 

Japanese Yen- USDJPY has lost more than 100 pips on diminishing Safe-haven demand. The near term support is at 107.50 and any break below targets 107/106.80. The pair is still in bearish mode and any reversal can be seen only above 109. It is currently trading around 107.80.

Shanghai composite- Shanghai has halted its weakness and shown a minor jump. The index is trading below 20-day MA. It is currently trading around 2924.

Technically, the index is facing strong support around 21484 (300- day EMA) and any violation below will drag the Nikkei till 21241 ( 200- day MA)/21000.

On the higher side, near term resistance is around 22000 and any violation below this level will take the index till 22250/22480.

It is good to buy on dips around 21500 with SL around 21250 for the TP of 22000/22250.