FxWirePro: Nikkei upside capped by 55- day EMA, good to sell on rallies
Nikkei has declined after hitting high of 19835 on Aug 15th 2017. The index has shown a minor selling from the high on account of global equities sell off strong yen. The index has declined till 19425 and is currently tr…
Nikkei has declined after hitting high of 19835 on Aug 15th 2017. The index has shown a minor selling from the high on account of global equities sell off strong yen. The index has declined till 19425 and is currently trading around 19456 0.18% lower.
USD/JPY has declined after hitting high of 110.94 on Aug 16th 2017. The pair should close above 100- MA at 111.30 in the daily chart for minor bullishness. It is currently trading around 109.33.The major short term support is around 108 and any break below targets 106.
On the lower side, index major support is around 19320 (200-day MA) and any close below will drag the index down till 19000 (61.8% retracement of 18193 and 20319)/18500.
The near term resistance of Nikkei is around 19850 (55- day EMA) and break above will take the index to 20000/20319 (Jun 20th 2017).Short term bullish invalidation only below 19275.
It is good to sell on rallies around 19550-19600 with SL around 19850 for the TP of 19320/19000.
