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FxWirePro: Nikkei225 downside capped by 38.2% fibo, good to buy on dips

  • Major support - 16260 (38.2% retracement of 14823 and 17159).
     
  • Nikkei225 has recovered sharply after declining till 16311 on Friday.It is currently trading around 16621.
     
  • The index has broken minor resistance at 16585 (daily Tenken-Sen) and a slight jump till 16705 (daily Kijun-Sen) is possible.
     
  • Technically in the daily chart the index is struggling to close above Kijun-Sen.Any break above Kijun-Sen confirms minor bullishness.
     
  • On the higher side, resistance is around 16705 (daily Kijun-Sen) and any break above targets 16835/ 17000/17159.Nikkei should break above 17159 for further bullishness.
     
  • The major support is around 16435 (100- day MA) and any break below targets 16260 (38.2% retracement of 14823 and 17159)/16000.

It is good to buy on dips around 16500 with SL 16250 for the TP of 16735/17000

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