FxWirePro:Nikkei trades below trend line support, dip till 21800 likely
Nikkei falls for fourth consecutive days after forming a temporary top around 22995.The index declined almost 800 points from the high. It has also broken trend line support at 22500.Nikkei is trading weak on global equi…
Nikkei falls for fourth consecutive days after forming a temporary top around 22995.The index declined almost 800 points from the high. It has also broken trend line support at 22500.Nikkei is trading weak on global equities sell-off and minor bullishness in Japanese yen. It is currently trading around 22307.
USD/JPY is showing a selling after a minor jump above 113.The pair jumped till 113.08 and is currently trading around 112.22. The pair’s minor weakness can be seen below 233- day MA at 112. Any daily close below 112 will take the pair to next level till 110.84/110. On the higher side, major resistance is around 113.36 and any convincing break above will take the pair till 114/115. It is currently trading around 112.22.
On the lower side, index major support is around 22200 (34- day EMA) and any break below will drag the index down till 22000/21750.
The near term resistance is around 2500 and any break above will take the index to next level till 22820/23000/23200.
It is good to sell on rallies around 22550-600 with SL at 22825 for the TP of 22000/21800.
