FxWirePro:Nikkei upside capped by 61.8% fibo, good to sell on rallies
Nikkei has recovered sharply after five days of weakness. The index has reached 25- year high at 23423 on Nov 9th 2017. The index recovery was mainly due to slight weakness in Yen and strong US markets. US Dow recovered …
Nikkei has recovered sharply after five days of weakness. The index has reached 25- year high at 23423 on Nov 9th 2017. The index recovery was mainly due to slight weakness in Yen and strong US markets. US Dow recovered yesterday and has jumped 187 points closed at 23458. Nikkei hits high of 22766 and is currently trading around 22448 0.55% lower.
USD/JPY has declined sharply after a minor jump till 113.32. The pair bullish continuation can be seen if it closes above 114.45 (161.8% fibo) level. On the lower side, major support is around 112.18 (233- day MA) and any close below will take the pair till 111.68 (100- day MA)/111.13. It is currently trading around 112.54.
On the lower side, index major support is around 22318 (100- H MA) and any break below will drag the index down till 22000/21750.
The near term resistance is around 22800 and any break above will take the index to next level till 23000/23200/23480.
It is good to sell on rallies around 22900-950 with SL around 23450 for the TP of 21840/21745.
