FxWirePro:Nikkei hits 26 year closing high, good to buy on dips
Nikkei breaks 2017 high at 23423 and hits high of 23674 yesterday. The index was trading above 2017 high . The major reason for jump in index was mainly due to slight weakness in yen and strong global stock markets. US D…
Nikkei breaks 2017 high at 23423 and hits high of 23674 yesterday. The index was trading above 2017 high . The major reason for jump in index was mainly due to slight weakness in yen and strong global stock markets. US Dow Jones rose 152.45 up 0.61% to 25075 first time on Thrusday on account of better than expected US ADP jobs data and strong oil price.It is currently trading around 23549 0.38% lower.
USD/JPY has taken support near 100- day MA at 112 and shown good jump of 86 pips. The pair jumped till 112.86 and is currently trading around 112.81. The pair should close above trend line resistance at 113.25 and any break above 113.25 will take the pair to next level till 114/115. The pair’s minor weakness can be seen below 200 day EMA at 111.66. Any daily close below 111.66 will take the pair to next level till 110.84/110.
On the lower side, index major support is around 23400 (Hourly Kijun-Sen) and any break below will drag the index down till 23279 (55- hour EMA)/22920.
The near term resistance is around 23800 and any break above will take the index to next level till 24000/24280.
It is good to buy on dips around 23250 with SL at 22980 for the TP of 23800/24000.
