FxWirePro: Nikkei trades flat, markets eye central banks meeting this week for further direction

Major resistance- 21300 (200- day MA)

Major support - 20700

Nikkei is consolidating between 21330 and 20971 for past 3 trading days. The index is holding above 21000 level. It is currently trading around 21141.

US Market- The Wall Street is trading in narrow range and markets eye Fed monetary policy on Wednesday . Dow Jones and S&P500 closed at 26089 (-0.07%) and 2887 (-0.16%).

Japanese Yen- USDJPY has recovered nearly 40 pips from low 108.21 but still trading below trend line resistance 109 and this shows overall trend is still in bearish mode. Any break below 107.80 confirms further bearishness.It is currently trading around 108.60.

Shanghai composite- Shanghai declines more than 1.5% after nearly 4% jump from low of 2822 level. It is currently trading around 2888. Any break above 2945 confirms bullish continuation and jump till 3000/3020 likely.

Technically Nikkei facing strong resistance around 21300-330 (200- day MA and Jun11th high) and any major jump can be seen only if it closes above this level. Any close above targets 21508 (300-day EMA)/21642 (61.8% fib)/21800.

On the flip side, near term support is around 21000 and any violation below this level will take the index till 20700/20500/20291 (Jun 2nd low).

It is good to buy on dips around 20700-725 with SL around 20490 for the TP of 21330.