FxWirePro: Nikkei recovers slightly on US market turnaround, good to sell on rallies

Asian markets is trading slightly lower and pared most of its gains made in the morning session. US markets has shown a huge turnaround especaily Dow Jones recovered nearly 3% more than 700 points from low. The US 10 year yield has lost more than 3.5% yesterday till 2.81% and shown a massive recovery till 2.905%. The spread between US 10-year and 2-year yield has increased slightly from 10 basis point till 13 basis point. Shanghai is trading flat after more than 2% decline from high of 2665.It is currently trading around 2607 (0.07% higher).Nikkei recovered more than 600 point from low of 221074 and is currently trading around 21584 (0.21% lower).

USDJPY hits low of 112.23 and shown a jump till 112.77.It is currently trading around 112.75.The near term major support is around 112 and any break below targets 111.37.

On the lower side, near term support is around 21174 and any break below targets 20795.

The near term resistance is at 21750 and any break above targets 22000/22330/22490 (200- day MA).

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