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FxWirePro: Nikkei trades higher on weaker yen, good to buy on dips

  • Nikkei has shown huge rebound after hitting 4- month low at 19144 on Aug 28th 2017 after North Korea fears eased. The index recovered till 19681 at the time of writing. The slight jump in Nikkei was also due to slight weakness in yen. It is currently trading around 19656 0.46% higher.
     
  • USD/JPY has jumped sharply after forming a temporary bottom at 108.27. The pair has broken major resistance at 110 and jumped till 110.60 at the time of writing. It is currently trading around 110.50.The major short term support is around 108 and any break below targets 106.
     
  • On the lower side, index major support is around 19420 (200-day MA) and any daily close below will drag the index down till 19144/19000 (61.8% retracement of 18193 and 20319)/18500.
     
  • The near term resistance of Nikkei is around 19685 (89- day EMA) and break above will take the index to 19735 (55- day EMA)/20000/20319 (Jun 20th 2017).Short term bullish invalidation only below 19145.

It is good to buy on dips around 19550-600 with SL around 19380 for the TP of 19850/20000.

 

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