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FxWirePro: Nikkei decline more than 1pct on weak Chinese data,good to sell on rallies

Asian markets are trading weak after release of Chinese data.The Caixin Media and IHS Markit China’s Dec manufacturing purchasing managers index fell to 49. 7 from 50.2.Shanghai is trading weak and is currently trading around 2468 (1.01% lower). Nikkei is trading lower and lost more than 1%. It is currently trading around 19640 (1.40% lower).

USDJPY is trading weak for 3rd consecutive day and lost more than `150 pips in past three trading sessions. The pair has broken major support 110 and has lost `more than 70 pips for the day. It is trading around 109.63.

 

On the lower side, near term support is around 19000 and any break below targets 18600/18000.

 

The near term resistance is at 19695 (200- W MA) and any break above targets 19950 (23.6% fib)/20500.

It is good to sell on rallies around 20000 with SL around 20525for the TP of 19000.

 

 

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