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Nikkei faces strong resistance at 19700, market awaits Fed meeting for further direction

Major resistance - 19698 ( Jan 9th 2017) 

Nikkei continued its winning streak for two consecutive days and is trading slightly above 19500 . It is currently trading at 19640 0.33% higher. 

•The index upside limited on account of increased probability of rate hike by Fed.US economy has added 235K jobs last month compared to forecast of 200K. 

• On the lower side , 19500 (resistance turned into support) and any break below will drag the index till 19340 (21 day EMA)/19190/19128  (trend line joining 18224 and 18973). 

•The major resistance is around 19698 (Jan 9th 2017 high) and any break above will take the index till 19917 (161.8% retracement of 19566 and 18986)/20000.  The minor resistance is around 19327 (daily Tenken-Sen)./19400.

It is good to buy on dips around around 19425-19450 with SL around 19300 for the TP of 19698/19900


 

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