FxWirePro:Nikkei225 trades lower on Fed rate hike,good to sell on rallie
Nikkei225 declines drastically after making a high of 19457 on account of first 25bpbs rate hike by Fed .It is currently trading around 19167 1.1% lower. US Fed hiked federal funds rate by 25bpbs from 0.5% to 0.75% and i…
Nikkei225 declines drastically after making a high of 19457 on account of first 25bpbs rate hike by Fed .It is currently trading around 19167 1.1% lower.
US Fed hiked federal funds rate by 25bpbs from 0.5% to 0.75% and is expected to hike more in the coming year on account of solid jobs growth.
Due to improvement in labor markets, Fed now projected Federal funds rate to be at 1.4% in 2017 compared to forecast of 1.1% on September.
Technically index is expected to decline further if it breaks below 18800 (200- H MA).
•On the higher side, major resistance is around 19445 (161.8% retracement of 19347 and 19187) and any break above targets 19600 (61.8% retracement of in the short term.
•The index immediate support is at 18800 (200- HMA) and any break below targets 18685 (61.8% retracement of 18224 and 19457)/18200.
•The index should break below 18000 for further weakness.
It is good to sell on rallies around 19300 with SL around 19500 for the TP of 18800.
