Nikkei trades below trendline support, dip till 19277 likely
Nikkei has broken major trend line support at 19990 and declined till 19889 at the time of writing on account of stronger yen. The index has formed a temporary top around 20319 and any further bullish continuation only above that level. It is currently trading around 19925 0.32% lower.
USD/JPY has broken major support at 111.76 (100- day MA) and closed well that level in daily chart. Any daily close below that level confirms minor weakness , a dip till 108 likely.The pair formed a temporary top around 114.49 and is currently trading around 1111.02. 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 19880 (55- day EMA) and any break below will drag the index down till 19688 (89 EMA)/19277 (May 18th 2017 low).
The near term resistance of Nikkei is around 20400 (trend line joining 20230 and 20319) and break above will take the index to 20477 (161.8% retracement of 20019 and 19277) /20530 (161.8% retracement of 20220 and 19744)/20649 (161.8% retracement of 19698 and 18193).
Short term bullish invalidation only below 19275.
It is good to sell on rallies around 20000 with SL around 20200 for the TP of 19690/19280.
USD/JPY has broken major support at 111.76 (100- day MA) and closed well that level in daily chart. Any daily close below that level confirms minor weakness , a dip till 108 likely.The pair formed a temporary top around 114.49 and is currently trading around 1111.02. 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 19880 (55- day EMA) and any break below will drag the index down till 19688 (89 EMA)/19277 (May 18th 2017 low).
The near term resistance of Nikkei is around 20400 (trend line joining 20230 and 20319) and break above will take the index to 20477 (161.8% retracement of 20019 and 19277) /20530 (161.8% retracement of 20220 and 19744)/20649 (161.8% retracement of 19698 and 18193).
Short term bullish invalidation only below 19275.
It is good to sell on rallies around 20000 with SL around 20200 for the TP of 19690/19280.