FxWirePro:Nikkei hits fresh year high, good to buy on dips

Nikkei225 breaks major resistance at 18740 and hits fresh year high today morning on account strong global equity markets. The index is currently trading around 18960 0.57% higher.

The European Central Bank has reduced its monthly bond purchase from 60 billion Euros to 80 billion Euros and extended its time line from Apr 2017 to Dec 2-017.

Technically index is slightly bullish as long as support 18540 (7- day EMA) holds.
•On the higher side, major resistance is around 19150 and any break above targets 19445 (78.6% retracement of 20720 and 14730)/19600 in the short term.

•The index immediate support is at 18540 (7- day EMA) and any break below targets 18200 (21- day MA)/ 17930 (34- day EMA).

•The index should break below 16800 for further weakness.

 It is good to buy on dips around 18500 for the TP of 18200 for the TP of 19000/19440.