FxWirePro: Nikkei Daily Outlook

Major resistance- 20800

Major support - 19900

Nikkei has lost more than 4% on an escalation of the US-China trade war. China has imposed tariffs of 5-10% on US goods worth $75 billion.US President Trump has said that it would raise tariffs from 25% to 30% on $250 billion goods and to 15% on another $300 billion tariffs. The index hits low of 19866 and is currently trading around 20304.

US Market- The Wall Street has closed extremely lower with Dow Jones and S&P500 25628 (2.37% lower) and 2847 (2.59% lower).

Japanese Yen- USDJPY has lost more than 200 pips on increase in a Safe-haven asset. It hits a low of 104.44 and recovered to 105.79. Any break below 104.40 confirms bearish continuation.

Shanghai composite- Shanghai has lost more than 1.5% on trade war escalation. It is currently trading around 2865. Any close below 2860 confirms bearish continuation and decline till 2800 likely.

Technically Nikkei facing near term resistance around 20500 and any minor jump can be seen only if it closes above this level. Any close above targets 20800/21220.

On the flip side, near term support is around 19900 and any violation below this level will take the index till 19600/19200. The minor support is around 20400/20100.

It is good to sell on rallies around 20525-550 with SL around 20800for the TP of 19900.