Nikkei downside capped by 7- day ma, good to buy on dips
- Nikkei has shown a minor selling after hitting fresh 21- year high at 21929 on weak yen and Abe’s victory in election.This will give political stability and raising the prospectus of continued stimulus. The index has dipped till 21628 and is currently trading around 21751 0.19% higher.
- USD/JPY has shown a minor decline after hitting high of 114.24 yesterday. The pair bullish continuation can be seen if it closes above 115 level. The pair’s major support is around 112.30 (233- day MA) and any close below will drag the index till 111.65/111.13. It is currently trading around 113.54.
- On the lower side, index major support is around 21510 (7- day MA) and any break below will drag the index down till 21280 (23.6% retracement of 19250 and 21929 )/21000.
- The near term resistance is around 21800 and any break above will take the index to next level till 22000/22250.
It is good to buy on dips around 21350-400 with SL around 21200 for the TP of 21780/22000.