FxWirePro:Nikkei downside capped by 200- MA, good to sell on rallies
Nikkei has declined almost 2% yesterday on account of global equities sell off and stronger yen.The index broken major support of 19635 (100-day MA) and declined till 19308 at the time of writing. The index has made a te…
Nikkei has declined almost 2% yesterday on account of global equities sell off and stronger yen.The index broken major support of 19635 (100-day MA) and declined till 19308 at the time of writing. The index has made a temporary top at 20319 on Jun 20th 2017 and any further bullish continuation only above that level. It is currently trading around 19349 0.11% lower.
USD/JPY has broken major support at 109.55 low made on Aug 9th 2017 and declined till 108.99. The pair should close above 100- MA at 111.32 in the daily chart for minor bullishness. It is currently trading around 109.The major term resistance is around 114.50 and any break above targets 115.50. The minor resistance is around 112/113.
On the lower side, index major support is around 19276 (200 day MA ) and any close below will drag the index down till 19000 (61.8% retracement of 18193 and 20319).
The near term resistance of Nikkei is around 19550 (23.6% retracement of 20319 and 18193) and break above will take the index to 19650 (100-day MA)/20000/20319 (Jun 20th 2017)Short term bullish invalidation only below 19275.
It is good to sell on rallies around 19550-600 with SL around 19850 for the TP of 19300/19000.
