FxWirePro: Nikkei Daily Outlook

Nikkei is consolidating in a narrow range between 22300 and 21900 for the past four trading sessions. Asian stocks have pared some of its gains as US house readies Trump impeachment inquiry. The US 10 year bond yield continues to trade lower for past 1-week and lost nearly 15% and spread between the US-10 year and 2-year has narrowed 3 bps from 9 bps. The index hits an intraday high of 22065 and is currently trading around 22028.

US Market- Wall Street has lower with Dow Jones and S&P500 26087 (0.53%) and 2966 (0.84%).

Japanese Yen- USDJPY is trading lower after forming a temporary top around 108.49 and any major weakness only below the 107 level.

Shanghai composite- Shanghai has formed a minor top around 3042 and lost more than 2.5%. Any break below 2915 confirms trend continuation and a dip till 2874.

Technically Nikkei facing near term resistance around 22300 and any minor jump can be seen only if it closes above this level. Any close above targets 22500/22800.

On the flip side, near term support is around 21700 and any violation below this level will take the index till 21520/21200.

It is good to buy on dips around 21700 with SL around 21500 for the TP of 22500.