FxWirePro: Nikkei trades higher on rate cut hopes, good to buy on dips

Major resistance- 21500 (300- day EMA)

Major support - 20700

Nikkei has shown good recovery of more than 300 points for the day on hopes of easing monetary policy by ECB and Fed. It hits an intraday high of 21667 and is currently trading around 21665.

US Market- The Wall Street has closed marginally higher with Dow Jones and S&P500 at 27171 (0.07%) and 2985 (0.28%).

Japanese Yen- USDJPY is trading higher for 3rd consecutive day and is trading slightly above 108. It is trading below trend line resistance 109 and this confirms the long term bearishness. It is currently trading around 108.06.

Shanghai composite- Shanghai has shown a sell-off of more than 150 points from a minor top 3048 levels. The overall trend is weak and any violation below 2880 confirms further bearishness. It is currently trading around 2888.

Technically Nikkei facing strong resistance around 21700 and any major jump can be seen only if it closes above this level. Any close above targets 22000/22280.

On the flip side, near term support is around 21500 and any violation below this level will take the index till 21315/21000.

It is good to buy on dips around 21200-225 with SL around 21000 for the TP of 21800.