FxWirePro: Nikkei Daily Outlook

Asian markets is trading stronger with Nikkei trading slightly positive after huge recovery of more than 800 points on account of strong US markets and weak yen. It hits high of 23890 highest level in 8 months .US markets S&P500 and Dow Jones  hits all time high yesterday and this shows that investors doesn’t worry much on US and China trade worries. Japan ‘s Nikkei purchasing manager index released today came at 52.9 much better than expected. Shanghai composite is trading flat after a recovery of 100 points from the low of 2644 and is currently trading around 2734(0.18% higher). US markets closed higher with Dow Jones at 26657 (0.95% higher) and S&P500 at 2930 (0.78% higher). US futures are currently trading flat with Dow Jones 26734 (0.07% higher) and S&P500 2935 (0.03% higher). Nikkei is trading around 23835 (0.07% lower).

USD/JPY is trading higher and has broken major resistance 112.15. It confirm further bullishness. It hits high of 112.73 and is currently trading around 112.67.
 

On the lower side, index near term support is around 23580 and any break below will drag the index down till 23470 (23.6% fib)/23170 (10- day MA)/23000. The major long term support is around 21750.
 

The near term resistance is around 24000 and any convincing break above will take the pair to next level 24280/24500.

It is good to buy on dips around 23400-450 with SL at 23000 for the TP of 24000/24280.