FxWirePro: Nikkei trades lower after Fed rate hike, good to sell on rallies
Nikkei has declined sharply after Fed monetary policy meeting. The index declined till 19759 and is currently trading around 19793. Fed raised its interest rates by 25bps point for the third time on six months from 1% to…
Nikkei has declined sharply after Fed monetary policy meeting. The index declined till 19759 and is currently trading around 19793.
Fed raised its interest rates by 25bps point for the third time on six months from 1% to 1.25% and maintained outlook for one more hike in 2017. Fed also unveils plan to reduce $4.5 trillion balance sheet this year.
On the lower side, near term support is around 19750 (Kijun-sen) and any break below will drag the index down till 19450 (38.2% retracement of 18189 and 20228)/19358 (89- EMA).
The near term resistance of Nikkei is around 20000 and break above will take the index to recent high of 20228/20477 (161.8% retracement of 20019 and 19277).
In the daily chart the index has formed bearish divergence in RSI and MACD. So a small dip till 19350 is likely.
It is good to sell on rallies around 19850-19900 with SL around 20220 for the TP of 19360.
