FxWirePro: Nikkei recovers slightly from low of 22043, good to sell on rallies

• Asian markets pared most of its gains following foot steps of US markets on account of rising trade war concerns.US market has closed weak with Dow Jones 24252 (1.33% lower) lost almost more than 300 points and S&P500 2717 (1.37% lower). China and European union has released a joint warning on the consequence of trade war.Chinese stocks has declined more than 20% from the Jan high and is into bearish territory. US Trump officials are planning to widen trade war against China by restricting Chinese access to US technology.USDJPY which is the main indicator of geo political tension declined more than 150 pips from the high of 110.90 and this shows that trade war between US and other economies has escalated.Nikkei has recovered almost 300 points from yesterday’s low. US futures is trading marginally higher with Dow Jones at 24338 (0.16% higher) and S&P500 2722 (0.13% higher). Nikkei is currently trading around 22358 0.80% higher.
   
• USD/JPY has shown a good decline of 150 pips on account of renewed trade war worries. The pair hits low of 109.36 and is currently trading around 109.59.
   
• 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 22450 (55-day EMA) and any convincing break above will take the index to next level till 22640 (20 day MA)/22800.

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