FxWirePro: Nikkei suffers huge selling and dives nearly 1000 points following footsteps of Wall Street, good to sell on rallies

Asian markets are trading extremely weak following footsteps of Wall Street especially Nikkei has lost more than 1000 points after breaking major support 20000. US markets continues to trade weak and enters into bear market territory . US markets has closed weak and lost more than 2.5% with Dow Jones 21792 (2.91% lower) and S&P500 2357 (2.71% lower). The US 10 year yield has lost more than 3.5% and has broken major support 2.74%.US 2 year yield (2.567%) is trading above US 5 year (2.567%). Shanghai is trading flat and is currently trading around 2503 (0.04% higher). Nikkei futures has shown a minor bounce form low of 19061 and is currently trading around 19321 (0.05% lower).

USDJPY was trading extremely lower and lost more than 200 pips in past three trading sessions. The pair has broken major support near 200-day MA and has lost nearly 50 pips for the day. It is trading around 110.33.

On the lower side, near term support is around 19000 and any break below targets 18600/18000.

The near term resistance is at 19695 (200- W MA) and any break above targets 19950 (23.6% fib)/20500.

It is good to sell on rallies around 20000 with SL around 20525 for the TP of 19000.