Nikkei225 faces strong support at 200- day MA, break below targets 19000/18700
Monday, August 21, 2017 3:32 AM UTC
- Nikkei has declined after forming a minor top around 19835 on Aug 15th 2017. The index has shown a minor selling from the high on account of global equities sell off and strong yen. The index has declined till 19325 and is currently trading around 19388 0.30% lower.
- USD/JPY has slightly recovered after hitting low of 108.60 yesterday. It should close above 100- MA at 111.23 in the daily chart for minor bullishness. It is currently trading around 109.24.The major short term support is around 108 and any break below targets 106.
- On the lower side, index major support is around 19320 (200-day MA) and any close below will drag the index down till 19000 (61.8% retracement of 18193 and 20319)/18500.
- The near term resistance of Nikkei is around 19668 (100- day MA) and break above will take the index to 19773 (21- day EMA)/20319 (Jun 20th 2017).Short term bullish invalidation only below 19275.
It is good to sell on rallies around 19550-19600 with SL around 19850 for the TP of 19320/19000