FxWirePro: Nikkei trades higher on weak yen, good to buy on dips
Asian markets were trading slightly higher on account of meeting between Donald Trump and Kim Jong Un. Nikkei jumped almost 300 points in previous week on account strong global cues and positive US markets. The highlight…
Asian markets were trading slightly higher on account of meeting between Donald Trump and Kim Jong Un. Nikkei jumped almost 300 points in previous week on account strong global cues and positive US markets. The highlight of this weekend was G7 meeting. All G7 leader seemed to endorse a common communique. But comments from Canadian PM Justin Trudeau said in press conference that Canada would impose tariffs on US imported goods on Jul 1st 2018. Trump lashed out Canada’s PM in twitter saying that “very dishonest and weak” and also threatened to impose tariffs on automobile. US markets have closed slightly higher on Friday with Dow Jones 25316 (0.30% higher) and S&P500 2779 (0.31% higher). US futures is trading flat with Dow Jones at 25307 (0.04% higher) and S&P500 2775 (0.04% lower).Nikkei is currently trading around 22836 0.66% higher.
USD/JPY has recovered sharply on easing geo political tensions. The pair should close above 110.17 (200- day MA) for further bullishness. It is currently trading around 109.96.
On the lower side, index major support is around 22587 (20- day MA) and any break below will drag the index down till 22479 (daily Kijun-Sen) /22330 (55- day EMA)/22137 (100- day MA)/21957 (200- day MA).
The near term resistance is around 22850 and any convincing break above will take the index to next level till 23050.
It is good to buy on dips around 22450-500 with SL at 22250 for the TP of 22800/23000.
