FxWirePro: Nikkei recovers slightly on weak yen, good to sell on rallies

• Asian markets are struggling to recover from Tuesday heavy loss. The escalating trade war between US and China were main reason for huge sell off. Shangahi composite declined sharply of more than 5% yesterday and hits low of 2871. It is currently trading around 2918. The improved risk appetite pushed the yield slightly higher. Nikkei pared early losses and jumped more than 400 points. US markets have closed slightly weak with Dow Jones 24700 (1.15% lower) and S&P500 2762 (0.40% lower). US futures is trading weak with Dow Jones at 24834 (0.48% higher) and S&P500 2772 (0.21% higher). Nikkei is currently trading around 22550 0.90% lower.
   
• USD/JPY has shown a good jump of more than 70 pips on account of easing geo political tensions . The pair hits low of 109.55 and is currently trading around 110.20.    
   
• On the lower side, index major support is around 22200 any break below will drag the index down till 22166 (200- day MA)/22000 (100- day MA).
   
• The near term resistance is around 22572 (34- day EMA) and any convincing break above will take the index to next level till 22740 (7- day MA)/23050.

It is good to sell on rallies around 22550-600 with SL at 22800 for the TP of 22000/21900.