- Nikkei has shown a profit booking from one month high on account of minor weakness in US market. The index rose more than 2.5% this week on account of weak yen. US markets Dow jones and S&P500 has closed marginally weaker. US futures continuing its range bound trade and is trading with Dow jones at 24664 (0%) and S&P500 2695 (0.089 higher).It is currently trading around 22178 0.19% higher.
- USD/JPY is trading slightly positive and slightly above 55- day EMA. It should break major resistance at 107.78 for further bullishness. It is currently trading around 107.64.
- On the lower side, index major support is around 22083 (20- 4H MA) and any break below will drag the index down till 21880 (55- 4H EMA)/21530 (200- 4H MA).
- The near term resistance is around 22530 and any break above will take the index to next level till 22694 (61.8% fibo)/23000.
It is good to buy on dips around 21700-725 with SL at 21490 for the TP of 22500.