FxWirePro: Nikkei recovers sharply as trade war fear eases, good to buy on dips

• Nikkei has shown a good recovery after hitting low of 21032 yesterday. The index jumped almost 707 points (3.36%) from the low. The index recovery was slightly supported by major weakness in yen as trade war worries eases. The yen was trading weak declined almost more than 100 pips yesterday after Trump twitted that ‘we are not in a trade war with China. The tweet came hours after China introduced new tariffs plans on 106 US products. Nikkei jumped till 21742 and is currently trading around 21722 0.74% higher. 
   
• US dollar index has once again declined after hitting high of 90.15 yesterday.US ISM manufacturing data came at slightly weaker than expected. It came at 59.3 last month compared to 60.8 for the month of Feb.
   
• USD/JPY has shown a 34 pips jump from the low of 105.65. It is currently trading around 105.94. The pair should break above 106 (55- day EMA) for minor jump till 106.70/107.    
   
• On the lower side, index major support is around 21413 (200- day MA) and any break below will drag the index down till 21200/21030/20925.
   
• The near term resistance is around 21800 (55- day EMA) and any break above will take the index to next level till 22000/22500.

It is good to buy on dips around 21400-450 with SL at 21180 for the TP of 21800/22000.