FxWirePro: Nikkei Daily Outlook

• Nikkei has once again declined after a minor recovery till 21529. The index dipped almost 300 points and shown a minor recovery on weak yen. The index upside will be capped due to escalation of trade war between US and China.US has imposed tariffs of 25% for 1300 products including industrial technology, transport and medical property. It is currently trading around 21332 0.75% lower. 
   
• US dollar index has once again declined after hitting high of 90.28 yesterday. The index should close above 90.24 (55- day EMA) 
• USD/JPY has shown a 34 pips jump from the low of 105.65. It is currently trading around 105.94. The pair should break above 106 (55- day EMA) for minor jump till 106.70/107.    
   
• On the lower side, index major support is around 20800 (61.8% fibo) and any break below will drag the index down till 20335/2000.
   
• The near term resistance is around 21400 (200- day MA) and any break above will take the index to next level till 21820/22100/22500.

It is good to sell on rallies around 21350-400 with SL at 21800 for the TP of 20850/20340.