FxWirePro:Nikkei225 trades higher on weak yen, good to buy on dips
Nikkei continues its winning streak for the fifth day on account of weaker yen.The index broken major psychological resistance at 19000 yesterday and is trading well above that level.The risk rally has kept safe haven as…
Nikkei continues its winning streak for the fifth day on account of weaker yen.The index broken major psychological resistance at 19000 yesterday and is trading well above that level.The risk rally has kept safe haven assets such as gold and yen under pressure.It is currently trading around 19224 0.19% higher.
Markets awaits Donald Trump new tax reform plan for further direction.The tax rate is expected to decline from 35% to 15% for the corporate in the new tax reform.
USD/JPY broken major resistance at 110.51 and jumped till 111.38 at the time of writing. The pair jumped from the low of 108.13. It is currently trading around 111.25.
On the lower side ,near term support is around 18950 (55- day EMA) and any break below targets 18790 (21- EMA)/ (18325 ( 61.8% retracement of 16106 and 16698) /1800/17800 is possible.
The major resistance is around 19341 and any break above will take the index till 19668 (Mar 2nd 2017 high)/20000.
It is good to buy on dips around 19000 with SL around 18750 for the TP of 19340/19665.
