FxWirePro: Nikkei hits fresh year high on weak yen, good to buy on dips
Nikkei continue its winning streak and hits fresh 21- year high at 21929 on weak yen and Abe's victory in election.This will give political stability and continuation of loose monetary policy. The index has broken the pr…
Nikkei continue its winning streak and hits fresh 21- year high at 21929 on weak yen and Abe's victory in election.This will give political stability and continuation of loose monetary policy. The index has broken the previous high of 21836 and is currently trading at 21839 0.27% lower.
USD/JPY has shown a minor recovery from the low of 113.24. The pair bullish continuation can be seen if it closes well above 114.10 and any close above will take the pair till 115. The pair's major support is around 112.25 (233- day MA) and any close below will drag the index till 111.65/111.13. It is currently trading around 113.77.
On the lower side, index major support is around 21778 (hourly Kijun-Sen) and any break below will drag the index down till 21326 (233- hourly MA)/21000.
The near term resistance is around 21800 and any break above will take the index to next level till 22000/22250.
It is good to buy on dips around 21350-400 with SL around 21200 for the TP of 21780/22000.
