FxWirePro: Nikkei recovers slightly as trade tension ease, good to buy on dips

• Nikkei has shown a good gap up opening and jumped almost 430 points from Friday’s low.  The minor jump in index was mainly after president Trump tweeted that he will “always” be friends with China president Xi Jinping.US S&P futures slightly pared yesterday loss and is trading around 2622 0.63% higher. The yen was trading slightly strong after hitting low of 107.48 against USD. It is currently trading around 21687 1.21% higher. 
   
• US dollar index declines slightly after hitting high of 90.60. Markets eyes US CPI data and Fed minutes meeting to be released this week for further direction.  
   
• USD/JPY has shown a minor 50 pips dip from the high of 107.48. It is currently trading around 106.97. The pair should break above 107.50 (55- day EMA) for minor jump till 108/108.50.    
   
• On the lower side, index major support is around 21575 (55- H EMA) and any break below will drag the index down till 21290 (200- H MA)/21000.
   
• The near term resistance is around 22000 and any break above will take the index to next level till 22200/22420.

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