- Nikkei is continuing its winning streak for second consecutive week after Abe's election victory and weak yen .This will give political stability and continuation of loose monetary policy. The index has made a fresh 21- year high at 21750 and is currently trading at 21681 0.58% higher.
- The prime minister ruling Liberal Democratic party led coalition secured two-third majority in lower house election.
- USD/JPY has shown a major recovery and has broken major resistance 113.45 and jumped till 114.10. The pair bullish continuation can be seen if trades well above 113.45 and any close above will take the pair till 115. The pair's major support is around 112.25 (233- day MA) and any close below will drag the index till 111.65/111.13. It is currently trading around 113.77.
- On the lower side, index major support is around 21528 (hourly Kijun-Sen) and any break below will drag the index down till 21392 (100- hourly MA)/20200/20000.
- The near term resistance is around 21800 and any break above will take the index to next level till 22000/22250.
It is good to buy on dips around 21350-400 with SL around 21200 for the TP of 21780/22000.
