FxWirePro: Nikkei trades higher on weak yen, good to buy on dips
Asian markets were trading slightly lower and markets shifts focus to central bank meeting to be happened this week. Markets remain muted after meeting between Kim and Trump. Kim and Trump signed deal for denuclearizatio…
Asian markets were trading slightly lower and markets shifts focus to central bank meeting to be happened this week. Markets remain muted after meeting between Kim and Trump. Kim and Trump signed deal for denuclearization yesterday. US FOMC meeting to get concluded today and is expected to hike rates by 25bpbs. Any hawkish comment from fed will drag the Asian markets further down. Nikkei jumped more than 300 points this week and hits high of 23024 on account strong global cues and positive US markets. US markets have closed flat yesterday with Dow Jones 25320 (0.01% lower) and S&P500 2786 (0.17% higher). US futures is trading slightly higher flat with Dow Jones at 25336 (0.02% higher) and S&P500 2794 (0.36% higher).Nikkei is currently trading around 22978 0.33% higher.
USD/JPY has recovered sharply on easing geo political tensions and the pair is trading well above 110.17 (200- day MA), a jump till 111.39 is possible. It is currently trading around 110.57.
On the lower side, index major support is around 22550 (20- day MA) and any break below will drag the index down till 22480 (daily Kijun-Sen) /22380 (55- day EMA)/22137 (100- day MA)/21957 (200- day MA).
The near term resistance is around 23050 and any convincing break above will take the index to next level till 23290/23500.
It is good to buy on dips around 22600-650 with SL at 22350 for the TP of 23000/23280.
