FxWirePro: Nikkei trades higher as trade war escalation eases, good to buy on dips

Nikkei is trading for 2nd consecutive days after US -Chinese trade officials to meet early this month. The index jumped more than 500 points and holding well above the 21000 levels. The US 10 year bond yield is trading slightly higher and recovered more than 6% and spread between the US-10 year and 2-year has widened from - 5 bps to +1.8 bps. The index hits high of 21169 and is currently trading around 21104.

US Market- The Wall Street has closed higher with Dow Jones and S&P500 26355 (0.91%) and 2937 (1.08%).

Japanese Yen- USDJPY is trading higher and any major bullishness only above 107.20 level.

Shanghai composite- Shanghai is one of the best performers and jumped more than 4.5% in the past four days. Any break above 3045 confirms major trend reversal and a jump till 3100/3200 likely.

Technically Nikkei facing near term resistance around 21250-350 and any minor jump can be seen only if it closes above this level. Any close above targets 21500/22000.

On the flip side, near term support is around 20840 and any violation below this level will take the index till 20500/20190.

It is good to buy on dips around 20850 with SL around 20600 for the TP of 21500.