- Nikkei index declined yesterday after jumping till 19962 on account of stronger yen . U.S dollar declined against all major pairs due to weak economic data.
- U.S housing starts dropped 2.6% to a seasonally adjusted annual rate of 1.7 million units lowest since Nov 2016.
- U.S dollar declined sharply against yen yesterday after forming a temporary top around 114.36. The pair declined till 112.36 and any minor bullishness can be seen only above 113.40. It is currently trading around 112.53.
- On the lower side near term support is around 19700 (10- day MA) and any break below will drag the index down till 19585 (23.6% retracement of 18193 and 20019)/19424 (21-EMA)/ 19106 (daily Kijun-Sen) is possible.
- The major resistance is around 20000 and any break above will take the index till 20180/20470.
It is good to sell on rallies around 19880-19900 with SL around 20050 for the TP of 19585/19300.