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.
