FxWirePro: Nikkei trades higher on positive global cues, good to buy on dips
Nikkei hits one month high on account of positive global cues and shown a minor profit booking. The index rose more than 2% from yesterday’s low. US markets Dow jones and S&P500 has closed flat after two days of bullishn…
Nikkei hits one month high on account of positive global cues and shown a minor profit booking. The index rose more than 2% from yesterday’s low. US markets Dow jones and S&P500 has closed flat after two days of bullishness. US futures continuing its range bound trade and is trading with Dow jones at 24748 (0.16% lower) and S&P500 2708 (0.02%).It is currently trading around 22211 0.23% higher.
The Federal Reserve latest beige book survey shows that outlook of USD economy is positive and trade war with China is a cause of concern.
USD/JPY is trading slightly positive and slightly above 55- day EMA. It should break major resistance at 107.78 for further bullishness. It is currently trading around 107.44.
On the lower side, index major support is around 21980 (20- 4H MA) and any break below will drag the index down till 21820 (55- 4H EMA)/21498 (200- 4H MA).
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 21700-725 with SL at 21490 for the TP of 22500.
