FxWirePro: Nikkei Daily Outlook

• Nikkei has broken major support at 55- EMA and slightly recovered from that level. The index is expected to trade weak on account of strong yen. The index has formed a temporary top around 20319 and any further bullish continuation only above that level. It is currently trading around 19925 0.32% lower.
   
• USD/JPY has broken major support at 111.76 (100- day MA) on Jul 21st and closed well that level in daily chart.  Any daily close below that level confirms minor weakness, a dip till 108 likely. The pair formed a temporary top around 114.49 and is currently trading around 1111.02. The major term resistance is around 114.50 and any break above targets 115.50. The minor resistance is around 112/113.
   
• On the lower side, index major support is around 19880 (55- day EMA) and any close below will drag the index down till 19688 (89 EMA)/19277 (May 18th 2017 low).
   
• The near term resistance of Nikkei is around 20400 (trend line joining 20230 and 20319) and break above will take the index to 20477 (161.8% retracement of 20019 and 19277) /20530 (161.8% retracement of 20220 and 19744)/20649 (161.8% retracement of 19698 and 18193).
     
• Short term bullish invalidation only below 19275.

It is good to sell on rallies around 20000 with SL around 20200 for the TP of 19690/19280.