Nikkei trades weak on strong yen, good to sell on rallies
• Nikkei falls slightly after showing a minor jump till 22665. The index is consolidating between 22682 and 22308 for the past five trading session. The index’s minor weakness was mainly due to sudden spike in yen against all majors and extended sell-off in Chinese market. It is currently trading around 22487.
• USD/JPY has broken major support 111 and declined till 110.84 yesterday. The pair is trading well below long term MA (100 and 200- day MA). The pair’s minor bullishness can be seen above 233- day MA at 112. Any daily close above 112 will take the pair to next level till 112.79 (50- day MA)/113.35. On the lower side, major support is around 111 and any convincing close below will take the pair till 110/109. It is currently trading around 112.54.
• On the lower side, index major support is around 22400 (233- H MA) and any break below will drag the index down till 22000/21750.
• The near term resistance is around 22812 (61.8% retracement) and any break above will take the index to next level till 23000/23200/23480.
It is good to sell on rallies around 22550-600 with SL at 22825 for the TP of 22000/21800.
• USD/JPY has broken major support 111 and declined till 110.84 yesterday. The pair is trading well below long term MA (100 and 200- day MA). The pair’s minor bullishness can be seen above 233- day MA at 112. Any daily close above 112 will take the pair to next level till 112.79 (50- day MA)/113.35. On the lower side, major support is around 111 and any convincing close below will take the pair till 110/109. It is currently trading around 112.54.
• On the lower side, index major support is around 22400 (233- H MA) and any break below will drag the index down till 22000/21750.
• The near term resistance is around 22812 (61.8% retracement) and any break above will take the index to next level till 23000/23200/23480.
It is good to sell on rallies around 22550-600 with SL at 22825 for the TP of 22000/21800.