FxWirePro: Nikkei225 upside capped by 5- day MA, good to sell on rallies
Major intraday resistance - 18532 (5- day MA). Nikkei trades weak on account of stronger yen and geopolitical tension.Tension between Washington and Pyongyang has escalated in recent weeks.The index shown a minor recover…
Nikkei trades weak on account of stronger yen and geopolitical tension.Tension between Washington and Pyongyang has escalated in recent weeks.The index shown a minor recovery after making a low of 18197. It is currently trading around 18402 0.35 % lower.
The Japanese yen recovered slightly after breaking below 200- day MA. The pair should close below 108.50 for further weakness.
On the lower side ,near term support is around 18325 ( 61.8% retracement of 16106 and 16698) and any break below targets 18000/17800 is possible.
The major resistance is around 18532 (5- day MA) and any break above will take the index till 18610 (daily Tenken-Sen))/ 18829 (100- day EMA).
It is good to sell on rallies around 18400 with SL around 18535 for the TP of 18000.
