FxWirePro: Nikkei trades lower as declining US bond yield reflects global slowdown,good to sell on rallies

Major support - 20800

Asian markets are trading higher especially Nikkei lost more than 0.60% on account of declining US bond yield. US 10 year bond yield has once shown a steep fall after minor jump of 2.45%. It hits fresh 14- month low at 2.345 for the day and this increases fear of recession in global markets. US 10 year yield trades (2.35%) below US 3 month yield (2.44%) and yield curve inverted for first time since 2007. USDJPY is trading lower after minor jump and lost more than 60 pips .It is currently trading around 110.18. US markets has closed slightly lower with Dow Jones at 25625 (0.00%) and S&P500 2805 (0.49% lower). Nikkei has lost more than 500 points from high of 21533 and is currently trading around 21049.

 On the lower side, near term support is around 20800 and any break below targets 20480/20350/20185.

 The near term resistance is at 21535 (300-day EMA) and any break above targets 21680/21755 (200- day MA).

It is good to sell on rallies around 21300-325 with SL around 21535 for the TP of 20800.