FxWirePro: Nikkei trades lower on hawkish Fed,good to buy on dips

Asian markets is trading lower after hawkish fed policy meeting. Fed has kept its interest rate unchanged and maintains it hawkish guidance . The central was optimistic on US economy ,jobs growth and inflation is near Fed’s 2% target. According to CMIE group’s FedWatch tool , the likelihood of the Fed raising rates by 25 bpbs in Dec is 75%. US markets closed flat with Dow Jones at 26191 (0.04%higher) and S&P500 at 2806 (0.25% lower).Chinese market shanghai is trading weak and lost almost 1% lower and is trading around 2610 0.97% lower.Nikkei has lost more than 350 points from high 22585. It is currently trading around 22255 (0.89% lower).

USDJPY hits 5-week high at 144.08 and has shown a minor decline. The near term major resistance is around 114.25 and any break above targets 114.55. It is currently trading around 113.86.

On the lower side, near term support is around 21990 (20- day MA) and any break below targets 21800/21500.

The near term resistance is at aid 22600 and any break above targets 23000/23280..

It is good to buy on dips around 22250-300 with SL around 2200 for the TP of 22800/23000.