FxWirePro: Nikkei declines more than 500 points from the high on account strong yen and escalating trade war, good to buy on dips

• Asian markets are trading lower on account of escalating trade war between US and China. US equities was trading lower after new threats to slap duties on all US imports from China and Trump’s criticizing fed on rate hike. US market has closed marginal lower with Dow Jones at 25058 (0.04% lower) and S&P500 2801 (0.09% lower). Chinese market has jumped more than 100 points from the low of 2753. It is currently trading around 2849. USD/JPY which is the main indicator of geo political tension is trading weak for third consecutive day. US futures is trading higher with Dow Jones at 25029 (0.02% lower) and S&P500 2796 (0.07% lower). Nikkei is currently trading around 22388 0.35% lower.
   
• USD/JPY has shown a major selling till 110.75 after hitting high of 113.13. It is currently trading around 110.98.
   
• On the lower side, index major support is around 22370 (55- day EMA) and any break below will drag the index down till 22195/22000/21750/21460.
   
• The near term resistance is around 22425 (50- day MA) and any convincing break above will take the index to next level till 22800/23050.

It is good to buy on dips around 22300-350 with SL at 22190 for the TP of 22780/23040.