Nikkei showed a minor pullback on weak yen. It hit a high of 38826 at the time of writing and is currently trading around 38776.
The gains in the insurance, textile, and paper and pulp sectors mainly led to the jump. Markets eye Tokyo CPI data for further direction.
The index holds above short-term 34 and 55 EMA and long-term moving averages (200- EMA) in 4-hour chart.
The near-term resistance is around 38800, any violation above will take the index to 39000/39200/39500/40000. Overall bullish continuation only above 42550.
On the lower side, immediate support stands around 37650, any breach below will drag the index down to 37500/37200/37000/36800.Further bearishness only below 35000.
Indicator (4- hour chart)
CCI (14)- Bullish
CCI (50)- Bullish
Average directional movement Index - Bullish
It is good to buy on dips around 38200-250 with SL around 37750 for a TP of 36800.
