FxWirePro: Nikkei Daily Outlook

• The index has once gained slightly after braking trend line support at 20000 on Friday. The index formed a major top around 20319 on Jun 20 20177 and further bullish continuation can be seen only above this level. It is currently trading around 20050 0.12% lower.
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• USDJPY has recovered slightly after hitting a low of 111.73. Short term trend is still bullish as long as support 110.95. Any break above 112.12 confirms bullish continuation, a jump till 113 likely. Intraday bearishness can be seen below 111.75 (100- day MA).It is currently trading around 111.82.
   
• On the lower side, index major support is around 19750 (55- day EMA) and any break below will drag the index down till 19540 (89 EMA)/19277 (May 18th 2017 low).
   
• The near term resistance of Nikkei is around 20400 (trend line joining 20019 and 20230) 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 20050-20080 with SL around 20320 for the TP of 19458/19277.