- Nikkei has broken major support 19925 (55- day EMA ) on Tuesday and declined till 19635 yesterday.The index is expected to decline till 19277 on account of strong yen. The index has made a temporary top at 20319 on Jun 20th 2017 and any further bullish continuation only above that level. It is currently trading around 19732 0.18% lower.
- USD/JPY has slightly recovered after hitting low of 109.55 yesterday. The pair should close above 100- MA at 111.34 in the daily chart for minor bullishness. It is currently trading around 110.03 The major term resistance is around 114.50 and any break above targets 115.50. The minor resistance is around 112/113.
- On the lower side, index major support is around 19635 (100 day MA ) and any close below will drag the index down till 19635 (100- day MA)/19277 (May 18th 2017 low).
- The near term resistance of Nikkei is around 20200 and break above will take the index to 20319 (Jun 20th 2017)/0477 (161.8% retracement of 20019 and 19277)/20649 (161.8% retracement of 19698 and 18193).
- Short term bullish invalidation only below 19275.
It is good to sell on rallies around 19850-19900 with SL around 20200 for the TP of 19280.
