FxWirePro: Nikkei hits a 14-month high on the strong global market, good to buy on dips

Nikkei continues to trade higher for the past 4 months after forming a minor bottom around 19984. It has surged more than 20% and hits 14-month high around 24168. The jump was mainly due to a strong global stock market in hopes of phase one trade deal and easing yen. It is currently trading around 24058.

Chinese industrial production and retail sales came better than expected also boosted sentiment. Shanghai recovered nearly 100 points till 3014 and is currently trading around 3013. Major breakout around 3050 and any break beyond confirms bullish continuation.

On the flip side, near-term support is around 23850 (5- day MA) and any indicative break below will take the index till 23700/23450.

The 24200 will be acting as resistance, convincing break over targets 24500/24750.

It is good to buy on dips around 23680-700 with SL around 23450 for the TP of 24280/24400.