Nikkei pared some of its after a minor pullback due to US economic uncertainty and yen strength. It hit a low of 36192 at the time of writing and is currently trading around 36830.
Markets eye US Non-Farm Payroll data today for further direction.
The yen gained strongly against all majors as recession fears have increased demand for safe-haven assets.
The index holds below short term (34 and 55 EMA) and long-term moving average (200- EMA) in 4-hour chart.
The near-term resistance is around 37100, any violation above will take the index to 37347 (23.6% fib)/ 37500/37695/38000. Overall bullish continuation only above 42550.
On the lower side, immediate support stands around 36410, any breach below will drag the index down to 36285/36000.
Indicator (4- hour chart)
CCI (14)- Bearish
CCI (50)- Bearish
Average directional movement Index - Bearish
It is good to sell on rallies around 37280-300 with SL around 37685 for TP of 36200.


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