FxWirePro: Nikkei declines from 7-week high on strong yen, good to buy on dips

Major support - 20700

Nikkei struggling to hold at higher levels and lost nearly 300 points on account trade war tension and strong yen. Markets eye US President Trump and Xi Jinping meeting next week for further direction. Oil rallied more than 5% on Middle East tension The index hits intraday low of 21301 and is currently trading around 21306.

US Market- The Wall Street continues to trade higher with Energy and gold miners are top performers It has closed higher with Dow Jones and S&P500 closed at 26753 (0.94%) and 2925 (0.95%) higher.

Japanese Yen- USDJPY is trading lower for 3rd consecutive day and lost more than 150 pips from high 108.61 on weak US dollar. The pair hits fresh 5- month low and a dip till 106. It is currently trading around 107.10.

Shanghai composite- Shanghai showed a massive jump and has broken major resistance 3000 on US-Sino trade deal optimism. The break above 3000 confirms minor trend reversal and a jump till 3050 is possible.

Technically Nikkei declined sharply after a minor jump above 300-day EMA. The near term resistance is around 21642 (61.8% fib) and any convincing break above targets 21800/22000 is possible.

On the flip side, near term support is around 21250 and any violation below this level will take the index till 21000/20700/20500/20291 (Jun 2nd low).

It is good to buy on dips around 21250 with SL 21000 for the TP 21800.