FxWirePro: Nikkei trades higher on weaker yen good to sell on rallies
Nikkei has recovered slightly after hitting a low of 20050 on account global equities recovery and weak yen. The index formed a major top around 20319 on Jun 20th 2017 . It is currently trading around 20229 0.13% higher.…
Nikkei has recovered slightly after hitting a low of 20050 on account global equities recovery and weak yen. The index formed a major top around 20319 on Jun 20th 2017 . It is currently trading around 20229 0.13% higher.
USDJPY has broken major resistance at 112.12 (May 25th high) and jumped till 112.46 on Jun 27th 2017 . Any break above 112.12 confirms bullish continuation , a jump till 113 likely.It is currently trading around 112.08.
On the lower side, near term support is around 19950 (trend line joining 19277 and 19744) and any break below will drag the index down till 19735 (55- EMA)/19520 (89 EMA)/19277 (May 18th 2017 low).
The near term resistance of Nikkei is around 20400 (trend line joining 20019 and 20230) and break above will take the index to 20477 (161.8% retracement of 20019 and 19277) /20530 (161.8% retracement of 20220 and 19744)/20649 (161.8% retracement of 19698 and 18193).
Short term bullish invalidation only below 19275.
It is good to sell on rallies around 20200-225 with SL around 20400 for the TP of 19458/19277.
