FxWirePro: Nikkei forms divergence in daily chart, good to sell on rallies
Nikkei hits 20000 level yesterday and has shown a minor decline from that level. The index has gained almost 8.5% from the low made on Apr 14th 2017.It is curretly trading around 19886 0.39% lower. USD/JPY has formed a m…
Nikkei hits 20000 level yesterday and has shown a minor decline from that level. The index has gained almost 8.5% from the low made on Apr 14th 2017.It is curretly trading around 19886 0.39% lower.
USD/JPY has formed a minor top around 114.32 and declined slightly from that level.Short term trend is slightly bullish and is expected to reach 115.50.Any further bullishness.It is currently trading around 113.78.
On the the lower side ,near term support is around 19585 (23.6% retracement of 18193 and 20019) and any break below targets 19278 (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.
