FxWirePro: Nikkei declines slightly on strong yen, good to buy on dips

Nikkei is trading mildly lower after more than 1500 points jump on US-China trade deal optimism. But declining manufacturing PMI in the US and Europe shows there is a chance of a slowdown in global economic growth. US 10 year yield breaks 1.97% low made on Jun 20th and hits the lowest level since 2016. The index declined more than 250 points and is currently trading around 21601.

US Market- The Wall Street has closed higher with Dow Jones and S&P500 closed at 26786 (0.26%) and 2973 (0.29%) higher.

Japanese Yen- USDJPY is trading lower and lost more than 100 pips from a high of 108.83. The near term support is at 107.50 and any break below targets 107/106.80. The pair is still in bearish mode and any reversal can be seen only above 109. It is currently trading around 107.61.

Shanghai composite- Shanghai is trading slightly lower after a more than 3% jump on US-China trade optimism. Short term trend is bullish as long as support 2955 holds. It is currently trading around 3022.

Technically, the index is facing strong support around 21471 (100- day MA) and any violation below will drag the Nikkei till 21243 ( 200- day MA)/21000.

On the higher side, near term resistance is around 22000 and any violation below this level will take the index till 22250/22480.

It is good to buy on dips around 21450 with SL around 21200 for the TP of 22000