FxWirePro: Nikkei Daily Outlook

Asian markets is trading slightly lower with Nikkei flat at 0.05% higher. Nikkei hits fresh 27 year high and  shown a minor profit booking. The jump was mainly due to easing trade tensions and strong global cues. The uncertainty in Italy has pushed Euro to six week low. The decline in Euro is due to Italian budget deficit of 2.4% GDP.  Euro recovered more than 50 pips after Corriere della Sera said that budget deficit will cut by 2% in 2021. US 10 year bond yield has shown a good recovery of more than 2% after minor sell-off till 3.02%. US markets closed mixed with Dow Jones at 26673 (0.46% higher) and S&P500 at 2923.43 (0.36% higher). US futures are currently trading marginally higher with Dow Jones 26854 (0.16% lower) and S&P500 2930 (0.16% higher). Nikkei is trading around 24225 (0.05% higher).

USD/JPY `has shown a minor selling of 50 pips after hitting 11 year high of 114.06.The pair is trading at 113.76 and a jump till 114.70 is possible
 

On the lower side, index near term support is around 23986 (55- 4H EMA) and any break below will drag the index down till 23600 (100- 4H MA)/23200. The major long term support is around 21750.
 

The near term resistance is around 24500 and any convincing break above will take the pair to next level 24725/25000.

It is good to buy on dips around 24025-24050 with SL at 23780 for the TP of 24500.