FxWirePro: Nikkei hits fresh 2-month high on positive global cues, good to buy on dips
Nikkei is continuing its fourth week of bullishness and shown a slight gap up opening. The index showing a good strength on account of yen weakness and strong earnings from US market. According to Factset, about 80% of t…
Nikkei is continuing its fourth week of bullishness and shown a slight gap up opening. The index showing a good strength on account of yen weakness and strong earnings from US market. According to Factset, about 80% of the S&P companies have reported better than expected results. The yen declined sharply against all majors especially against USD. US markets Dow jones and S&P500 closed flat on Friday.US futures is trading slightly positive with Dow jones at 24421 (0.40%) and S&P500 2680 (0.36% higher).It is currently trading around 22457 0.20% higher.
USD/JPY has shown a minor selling after hitting high of 109.53level. Any break above 109.60 confirms further bullishness and a jump till 110.25 likely.
On the lower side, index major support is around 22378 (55- H EMA) and any break below will drag the index down till 22177 (200- H MA)/22000/21697 (Apr 13th low).
The near term resistance is around 22530 and any break above will take the index to next level till 22694 (61.8% fibo)/23000.
It is good to buy on dips around 22150-200 with SL at 21920 for the TP of 22500/22680.
