Nikkei is trading higher and hits 2-week high following footsteps of Wall street.The main reason for recovery are
- Weaker than expected US non farm payroll increased chance of rate cut by Fed. US economy has added 75000 jobs in May and wage growth has declined to 0.2% from 0.3%.
- US-Mexico has stuck with a deal on late Friday as Mexico accepted to reduce illegal migrants.
- USDJPY has recovered more than 60 pips from low of 107.84.
On the higher side, near term resistance is around (55-day EMA) and any violation above will take the index to next level till 21437/21550/21681.
The near term support is around 20950 and any convincing break below will drag the index down till 20650/20458/20288.
It is good to buy on dips around 20850-900 with SL around 20600 for the TP of 21280/21437.
