FxWirePro: Nikkei declines slightly on profit booking, good to buy on dips
Asian markets declining slightly on account of profit booking. Nikkei jumped almost 500 points in this week on account strong global cues and positive US markets. Euro hits 2- week high and global bond yields has shown a…
Asian markets declining slightly on account of profit booking. Nikkei jumped almost 500 points in this week on account strong global cues and positive US markets. Euro hits 2- week high and global bond yields has shown a good jump on hopes that ECB would wind up stimulus program.US 10 –year bond yields is trading firm and rose more than 2% from yesterday’s low and is currently at 2.97%. US markets have closed flat yesterday with Dow Jones 25241 (0.38% higher) and S&P500 2770 (0.07%lower). US futures is trading slightly with Dow Jones at 25188 (0.32% lower) and S&P500 2766.38 (0.23% lower).Nikkei is currently trading around 22630 0.42% lower.
USD/JPY has declined slightly after showing a jump till 110.20. The pair should close above 110.17 (200- day MA) for further bullishness. It is currently trading around 109.60.
On the lower side, index major support is around 22580 (20- day MA) and any break below will drag the index down till 22475 (daily Kijun-Sen) /22297 (55- day EMA)/22110 (100- day MA)/21957 (200- day MA).
The near term resistance is around 22850 and any convincing break above will take the index to next level till 23050.
It is good to buy on dips around 22450-500 with SL at 22250 for the TP of 22800/23000.
