FxWirePro: Nikkei downside capped by 200 –day MA, good to buy on dips
Nikkei has slightly recovered after hitting low of 19308 on Friday. The index has shown a huge decline on account of global equities sell off and strong yen. The index has taken support near 200 –day MA and jumped slight…
Nikkei has slightly recovered after hitting low of 19308 on Friday. The index has shown a huge decline on account of global equities sell off and strong yen. The index has taken support near 200 –day MA and jumped slightly from that level. It is currently trading around 19567 0.11% lower.
USD/JPY has recovered after making low of 108.72 yesterday. The pair should close above 100- MA at 111.30 in the daily chart for minor bullishness. It is currently trading around 109.58.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 19287 (200 day MA) and any close below will drag the index down till 19000 (61.8% retracement of 18193 and 20319).
The near term resistance of Nikkei is around 19650 (100- day MA) and break above will take the index to 20000/20319 (Jun 20th 2017).Short term bullish invalidation only below 19275.
It is good to buy on dips around 19450-19500 with SL around 19275 for the TP of 20000/20315..
