FxWirePro:Nikkei hits 2- year high on weak yen, good to buy on dips
Nikkei hits two year high on hawkish Fed statement and weak yen. The pair hots high of 20497 and slightly declined from that level.It is trading around 20397 0.05% higher. Fed signalled that there might be one more rate …
Nikkei hits two year high on hawkish Fed statement and weak yen. The pair hots high of 20497 and slightly declined from that level.It is trading around 20397 0.05% higher.
Fed signalled that there might be one more rate hike this year and also informed they will reduce its balance sheet by next month.
USD/JPY has broken major resistance of 112.20 and jumped till 112.64 at the time of writing. Any convincing break above 112.20 will take the pair to next level till 113/114.50.It is currently trading around 112.45 Short term support is around 107.30 and any break below targets 106.
On the lower side, index major support is around 2000 and any break below will drag the index down till 19850 (100- day MA)/ 19598 (20- day MA)/19425 (61.8% retracement of 19144 and 19899)/19250 (233- day MA)/19144.
The near term resistance of Nikkei is around 20500 and break above will take the index to 20905/21000.
It is good to buy on dips around 20200 with SL around 20000 for the TP of 20500/20900
