FxWirePro: Nikkei trades higher on strong global cues, good to buy on dips
Nikkei is continuing its third week of bullishness and jumped more than 500 points in this week. The index showing a good strength on account of yen weakness and strong earnings from US market. The yen declined sharply a…
Nikkei is continuing its third week of bullishness and jumped more than 500 points in this week. The index showing a good strength on account of yen weakness and strong earnings from US market. The yen declined sharply against all majors especially against USD. US markets Dow jones and S&P500 has recovered more than 2.5% this week from the low.US futures is trading slightly weak with Dow jones at 24305 (0.03% lower) and S&P500 2668 (0.18% lower).It is currently trading around 22457 0.20% higher.
USD/JPY is consolidating after hitting high of 109.46. Any break above 109.46 confirms further bullishness and a jump till 110.25 likely.
On the lower side, index major support is around 22300 (55- H EMA) and any break below will drag the index down till 22128 (200- H MA)/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 22000-050 with SL at 21840 for the TP of 22500/22680.
