FxWirePro: Nikkei pares yesterday’s gain on renewed trade war, good to sell on rallies

• Asian markets pared most of its gains from yesterday high as trade worries woes investor sentiment.US market has closed slightly positive with Dow Jones 24580 (0.19% higher) and S&P500 2754 (0.19% higher). Donald Trump has threatened to impose 20% tariff on Friday on all imports of EU assembled car. The fall in the Asian markets was triggered by a report from Wall street journal that Trump is planning to ban Chinese companies from investing in U.S technology.USDJPY which is the main indicator of geo political tension declined more than 150 pips yesterday and this shows that trade war between US and other economies has escalated.Nikkei has declined almost 200 points from yesterday’s high. US futures is trading marginally higher with Dow Jones at 24419 (0.61% lower) and S&P500 2740 (0.40% lower). Nikkei is currently trading around 22355 0.94% lower.
   
• USD/JPY has shown a good decline of 150 pips on account of renewed trade war worries. The pair hits intraday low of 109.40 and is currently trading around 109.45.
   
• On the lower side, index major support is around 22200 (200- day MA) any break below will drag the index down till 22000/21800.
   
• The near term resistance is around 22800 and any convincing break above will take the index to next level till 23050/23200.

It is good to sell on rallies around 22600 with SL at 22800 for the TP of 22200/21850.