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FxWirePro: Nikkei Daily Outlook

Asian markets trading slightly higher following foot steps of US markets. US markets closed slightly higher on account of better than expected Q2 results. Almost more than 80% of companies in S&P500 posted better than expected corporate earnings. China China reacted to the recent trade tariff by imposing import tariff of $60 billion worth of U.S goods on Friday. Mr Trump threatened to apply tariffs to all $505 billion of Chinese imports. Chinese market halted its weakness and shown a minor of jump of more than 1%. It is currently trading around 2738. US market has closed slightly higher yesterday with Dow Jones at 25502 (0.16% higher) and S&P500 2850 (0.35% higher). USD/JPY which is the main indicator of geo political tension is trading slightly lower on rising trade war tension . US futures is trading flat with Dow Jones at 25533 (0.16% higher) and S&P500 2849 (0.07% higher). Nikkei is currently trading around 22605 0.15% higher as index heavy weight Softbank posted better than expected quarterly results.
 

USD/JPY is trading slightly lower after hitting high of 112.15 and is currently trading around 111.32 (0.06% lower).
 

On the lower side, index major support is around 22570 (55- day EMA) and any break below will drag the index down till 22370 (200- day MA)/22240/22000/21750.
 

The near term resistance is around 22650 and any convincing break above will take the index to next level till 22800/23050/23200.


It is good to buy on dips around 22350-400 with SL at 22150 for the TP of 23040.

 

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