FxWirePro: Nikkei trades higher on weak yen, good to buy on dips
Nikkei is continuing its winning streak for second consecutive week due to weak yen and on expectations that ruling bloc will win elections later this month.This will give political stability and continuation of loose mo…
Nikkei is continuing its winning streak for second consecutive week due to weak yen and on expectations that ruling bloc will win elections later this month.This will give political stability and continuation of loose monetary policy. The index has made a 21- year high at 21512 and is currently trading at 21435 0.48% higher.
USD/JPY has shown a major recovery till 113.30 after hitting a low of 112.26 yesterday. The pair bullish continuation can be seen only above 113.45 and any break above will take the pair till 114/115. The pair's major support is around 111.12 (100- day MA) and any close below will drag the index till 110/108. It is currently trading around 113.20.
On the lower side, index major support is around 21150 (9- day EMA) and any break below will drag the index down till 20766 (20- day MA)/20638 (daily Kijun-Sen)/20200/20000.
The near term resistance is around 21500 and any break above will take the index to next level till 21600/21780.
It is good to buy on dips around 21200 with SL around 20900 for the TP of 21580/21780.
