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FxWirePro: Nikkei225 forms Bullish pattern, good to buy on dips

  • Harmonic chart pattern - Bullish AB=CD .
     
  • Nikkei has recovered slightly after making a low of 18500 on Friday. The index declined sharply on Friday on account of geopolitical risk along with expensive valuation.It is currently trading at 18808 at 0.16% higher. 
     
  • U.S missile attack against Syria's Assad has rattled equity markets and pushed gold ,oil higher.
     
  • USD/JPY  has once again recovered after making a low of 110.09 and any weakness can be seen only below 110. It is currently trading around 111.45. 
     
  • On the lower side , 18500 will be acting as major support for Nikkei and any break below will drag the index till 18325 ( 61.8% retracement of 16106 and 16698)/18000 . 
     
  • The major resistance is around 18860 (100- day EMA ) and any break above will take the index till 19083 (21- day EMA)/19200/19365 ( 61.8% retracement of 19669 and 18867). 

It is good to buy on dips around 18750 with SL around 18500 for the TP of 19080/19200.

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