Nikkei: Daily Outlook

• Nikkei has shown gap down opening today morning on account political uncertainty in North Korea. Asian stock market has shown a sell off after North Korea tests hydrogen bomb on Sunday. North Korea on Sunday conducted its sixth and most powerful nuclear test. The demand for safe haven assets such as Gold, Swiss franc and yen increased due to this uncertainties. The index declined till 19476 and is currently trading around 19501 0.96% lower.
   
• USD/JPY has declined slightly after forming a temporary top around 109.79. The pair upside capped by 55- day EMA at 110.67 and any break above will take the pair till 111.17/112. It is currently trading around 109.79.The major short term support is around 108 and any break below targets 106.
   
• On the lower side, index major support is around 19435 (200-day MA) and any daily close below will drag the index down till 19144/19000 (61.8% retracement of 18193 and 20319)/18500.
   
• The near term resistance of Nikkei is around 19745 (100- day MA) and break above will take the index to 19798 (cloud bottom)/20000/20319 (Jun 20th 2017).Short term bullish invalidation only below 19145.

It is good to sell on rallies around 19700-750 with SL around 19850 for the TP of 19450/19000.