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FxWirePro: Nikkei trades lower as US futures declines on US government shutdown,good to buy on dips

Asian markets are trading mixed especially Nikkei declines nearly 200 points from yesterday’s high of 20281 following footsteps of Wall Street.US futures is trading lower  with Dow Jones 23787 (0.80% lower) and S&P500 2573 (0.83% lower) on US government shutdown hits record of crossing 21 days which happened during 1995-96. Shanghai is trading slightly lower and is currently trading around 2538 (0.60% lower). Nikkei is trading   at 20046 (0.61% lower).

USDJPY has lost nearly 100 pips from high of 108.12. Minor weakness can be seen below 107.50 and any violation below targets 106.80/106. It is currently trading around 108.11.

 

On the lower side, near term support is around 19900 and any break below targets 19600/19000.

 

The near term resistance is at 20510 (38.2% fib) and any break above targets 20926 (55-day EMA)/21300.

It is good to buy on dips around 19600 with SL around 19200 for the TP of 20509.

 

 

 

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