FxWirePro: Nikkei trades weak on account of stronger yen, good to sell on rallies
Nikkei index declined yesterday after jumping till 19962 on account of stronger yen . U.S dollar declined against all major pairs due to weak economic data. U.S housing starts dropped 2.6% to a seasonally adjusted annual…
Nikkei index declined yesterday after jumping till 19962 on account of stronger yen . U.S dollar declined against all major pairs due to weak economic data.
U.S housing starts dropped 2.6% to a seasonally adjusted annual rate of 1.7 million units lowest since Nov 2016.
U.S dollar declined sharply against yen yesterday after forming a temporary top around 114.36. The pair declined till 112.36 and any minor bullishness can be seen only above 113.40. It is currently trading around 112.53.
On the lower side near term support is around 19700 (10- day MA) and any break below will drag the index down till 19585 (23.6% retracement of 18193 and 20019)/19424 (21-EMA)/ 19106 (daily Kijun-Sen) is possible.
The major resistance is around 20000 and any break above will take the index till 20180/20470.
It is good to sell on rallies around 19880-19900 with SL around 20050 for the TP of 19585/19300.
