- 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.
