FxWirePro: Nikkei recovers sharply on US-Sino trade truce and weak yen, good to sell on rallies

Asian markets is trading higher especially Nikkei gained more than 1.5% on hopes on US-China trade deal. US markets has pared its gains and has close slightly lower with Dow Jones 24370 (0.22% lower), S&P500 2636 (0.04% lower).The US 10 year yield shown a minor recovery of more than 2% from low of 2.817% and US 2 year yield (2.78%) is trading above US 5 year (2.74%). Shanghai is trading slightly higher and is currently trading around 2599 (0.20% higher).Nikkei recovered more than 2.5% from low of 20948 and is currently trading around 21535 (0.63% higher).

USDJPY jumped more than 100 pips after hitting low of 112.23.It is currently trading around 113.44.The near term major resistance is around 113.50 and any break above targets 114/114.25.

On the lower side, near term support is around 21000 and any break below targets 20795.

The near term resistance is at 21800 and any break above targets 22050/22217 (89- day EMA).

It is good to sell on rallies around 21600-650 with SL around 21800 for the TP of 21000.