FxWirePro: Nikkei trades higher on weak yen, good to buy on dips

• Asian markets are trading slightly positive excluding Nikkei which ahs declined slightly on account of profit booking. Fed Chairman Powell on his testimony on Tuesday mentioned that US economy is growing faster with job market remains stronger and inflation will stay near 2%. The central bank said it is on the track to gradually raise interest rates. crude oil prices. Japan and European Union signed a huge free trade agreement covering almost a thurd of economy.US market has closed marginnaly higher with Dow Jones at 25119 (0.22% higher) and S&P500 2809 (0.40% higher). Chinese market is trading flat after more than 2% recovery.It is currently trading around 2799 (0.04% higher). USD/JPY which is the main indicator of geo political tension is trading higher which is also supporting Nikkei. US futures is trading higher with Dow Jones at 25131 (0.03% higher) and S&P500 2809 (0.03% higher). Nikkei is currently trading around 22794 0.84% higher.
   
• USD/JPY has shown a good recovery and has broken major resistance 113. It hits high of 113.07 and is currently trading around 113.02.
   
• On the lower side, index major support is around 22335 (55- day EMA) and any break below will drag the index down till 22080/21750/21460.
   
• The near term resistance is around 22800 (trend line resistance) and any convincing break above will take the index to next level till 23040/23200.

It is good to buy on dips around 22400-450 with SL at 22280 for the TP of 22780/23040.