FxWirePro: Nikkei faces strong resistance at 20000, good to sell on rallies
Nikkei is consolidating after hitting 20000 level and is trading at 17 month high. The index has gained almost 8.5% from the low made on Apr 14th 2017 on account of easing fears about euro zone and strong earnings. It is…
Nikkei is consolidating after hitting 20000 level and is trading at 17 month high. The index has gained almost 8.5% from the low made on Apr 14th 2017 on account of easing fears about euro zone and strong earnings. It is currently trading around 19935 0.01% lower.
Mistubishi motors surged to highest level in this year after better than expected projection for next fiscal compared to annual loss of $1.75 billion.
USD/JPY is facing strong resistance at 114.35 and any break above will take the pair to next level till 115.50.Any further bullishness only above 115.50.It is currently trading around 114.15.
On the the lower side ,near term support is around 19585 (23.6% retracement of 18193 and 20019) and any break below targets 19338 (21-EMA)/ 19106 (daily Kijun-Sen) is possible.
The major resistance is around 20000 and any break above will take the index till 20180/20470.
In daily chart Nikkei has formed bearish divergence in RSI and MACD , a slight decline till 19500/19300 likely.
It is good to sell on rallies around 19880-19900 with SL around 20050 for the TP of 19585/19300.
