FxWirePro: Nikkei Daily Outlook

Nikkei is trading flat after hitting 2-month high yesterday. The index was following the footsteps of US markets. The optimism in the trade deal between the US and China is the main reason for the jump in global markets. But slight weakness in global manufacturing PMI especially Eurozone and the US is increasing the chance of global growth slowdown.US ISM PMI came at the lowest level since 2016 yesterday at 51.7. The index hits high of 21846 and is currently trading around 21746.

US Market- The Wall Street futures are trading higher and hits a fresh all-time high with Dow Jones and S&P500 closed at 26717 (0.44%) and 2964 (0.77%) higher.

Japanese Yen- USDJPY is consolidating after jumping more than 100 pips. The near term resistance is around 108.51 and any break above targets 109. The pair is still in bearish mode and any reversal can be seen only above 109. It is currently trading around 108.32.

Shanghai composite- Shanghai is trading flat after more than 3% jump on US-China trade optimism. Short term trend is bullish as long as support 2955 holds. It is currently trading around 3038.

Technically, the index is facing strong support around 21490 (300- day EMA) and any violation below will drag the Nikkei till 21249( 200- day MA)/21000.

On the higher side, near term resistance is around 22000 and any violation below this level will take the index till 22250/22480.

It is good to buy on dips around 21450 with SL around 21200 for the TP of 22000.