FxWirePro: Nikkei trades higher on weak yen and upbeat US jobs data, good to buy on dips
Asian markets is trading higher mixed especially Japan’ Nikkei on account of weaker yen. The upbeat US Nonfarm payroll data offset trade war fear. US economy has added 223k jobs in the month of May compared to forecast o…
Asian markets is trading higher mixed especially Japan’ Nikkei on account of weaker yen. The upbeat US Nonfarm payroll data offset trade war fear. US economy has added 223k jobs in the month of May compared to forecast of 189k and unemployment rate dropped to 18- year low at 3.8%. US average hourly earnings rose by 0.3% last month compared to forecast of 0.2%. The political uncertainty in Italy has been eased as Italian party’s agreed to form coalition government. US markets have closed slightly higher yesterday with Dow Jones 24635 (0.90% higher) and S&P500 2734 (1.08% higher). US futures is trading marginally higher with Dow Jones at 24674 (0.24% higher) and S&P500 2734 (0.14% higher).Nikkei is currently trading around 22500 0.60% higher.
USD/JPY has recovered almost more than 150 pips from low of 108.11. The pair has taken support near 100- day MA. Any further weakness can be seen if it breaks below 108. It is currently trading around 109.68.
On the lower side, index major support is around 21880 (200- day MA) and any break below will drag the index down till 21697 (Apr 13th low).
The near term resistance is around 22270 (55- day EMA) and any break above will take the index to next level till 22340/22560 (20- day MA)/22800.
It is good to sell on rallies around 22270-300 with SL at 22510 for the TP of 21880/21750.
